How are annual earnings for an international investment measured?

Annual earnings for an international investment are primarily measured by the rate of return. This term refers to the gain or loss made on an investment over a specific period, expressed as a percentage of the initial investment amount. It encompasses all forms of earnings, including interest, dividends, and capital gains, as well as adjustments for any losses.

Investors use the rate of return to assess the performance of their investments and to compare returns across different investment opportunities or assets. This metric helps to evaluate the effectiveness of investment strategies in the international arena, taking into account various factors such as currency fluctuations, changing market conditions, and differing economic environments.

Other terms, like depreciation and appreciation, relate to changes in the value of assets over time, but they do not directly measure earnings. Fluctuation generally refers to variations in value or price, which can affect returns but is not a measurement of earnings itself. Thus, the rate of return provides a clear and comprehensive way to measure the annual earnings from an international investment.