IMAX (NYSE:IMAX) announced a deal on Monday to add 35 new screens to China and South Korea. It's a smart move, especially with RealD (UNKNOWN:RLD.DL) taking a hit last week after announcing a sequential decline in ticket sales for June.

In this video, longtime Fool contributor Rick Munarriz explains why IMAX's push overseas is the reason the company is able to grow despite some headwinds closer to home.

Pacific Rim was a disappointment for IMAX investors this past weekend, given the disappointing box office receipts, but the Pacific Rim itself is certainly not going to let investors down.

Longtime Fool contributor Rick Munarriz has no position in any stocks mentioned. The Motley Fool recommends and owns shares of IMAX. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.