There are a handful of investing principles that have stood the test of time but maybe none more so than the importance of diversification. For the average investor, diversification is more of a requirement than a recommendation. It reduces risks and increases the chance for greater long-term returns.

Not only should investors seek diversification in company sectors and investment types, but they should also look to diversify their holdings' geographical location. Investors who only focus on U.S. companies may be doing themselves a disservice because there are plenty of great investment opportunities outside of that market.

However, international companies aren't a monolith; different regions provide different benefits.

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Source Fool.com