As globalization increases, companies tend to broaden their operations across various regions and countries beyond their domicile, i.e., their home country. Whenever a firm operates with production lines established in multiple countries and with customers located across various geographies, its country of incorporation or its headquarters' domicile provides limited information about the fundamentals that drive its revenue stream and its potential for success. The economic exposure of companies represents a new factor in the construction of diversified equity portfolios that could well serve as an alternative metric to the traditional country-factor definition. 

Read: STOXX® International Exposure Indices – Tilting indexing strategies toward firms' economic exposure