If the real interest rate is 4% in Japan and 6% in the U.S., why would some capital move from the U.S. to Japan?

Name: If the real interest rate is 4% in Japan and 6% in the U.S., why would some capital move from the U.S. to Japan?
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Quizplus · Accepted Answer

Investors often move capital to different markets to diversify their risk, not just to seek the highest rate of return. Diversification can protect against country-specific or market-specific downturns, even if it means accepting a lower interest rate in some cases.

If the Real Interest Rate Is 4% in Japan and 6