How is the annual earnings for an international investment typically measured?

The annual earnings for an international investment is typically measured through the rate of return. The rate of return quantifies the gains or losses generated by an investment relative to its initial cost. It is expressed as a percentage and allows investors to assess the profitability of their investments over time. For international investments, this measurement can incorporate both capital gains (or losses) and any income generated, such as dividends or interest, thus providing a comprehensive view of financial performance.

This measure is crucial for investors to compare different investment opportunities and to evaluate the effectiveness of their investment strategies, particularly in the context of varying international markets and economic conditions. It captures how well an investment has performed, helping investors make informed decisions about future investments.