This book recommends and examines the various approaches to incorporating an accurate measure of risk into the appraisal of an international investment. It considers the way in which decisions on international investment projects are taken and how they should be. It critiques and integrates existing theories, including the global capital asset pricing rule of financial theory, theories of strategy making and the real options approach, to show how risk should be incorporated into the present value formula and its various elements to produce a clear decision rule.
|Publisher:||Palgrave Macmillan UK|
|Edition description:||1st ed. 2006|
|Product dimensions:||5.51(w) x 8.50(h) x (d)|
Table of Contents
Introduction * PART ONE: RISK AND A HOME COUNTRY BIAS * A Review of Theory Concerning Risk and the Foreign Investment Decision * Risk and Risk-Generating Events * Home Country Bias in Foreign Direct Investment * PART TWO: DIFFERENT PERSPECTIVES ON INVESTMENT APPRAISAL * The Investment Process and Decision Making: The Financial Perspective * The Investment Process and Decision Making: The Strategic Perspective * The Investment Process and Decision Making: The Organizational Perspective * PART THREE: THE DIFFERENT TYPES OF RISK * The Context of Risk * Country Risk * Enterprise and Project Risk * PART FOUR: RESPONSES TO RISK AND THE DETERMINANTS OF FDI * Responses to Risk * The Behaviours of FDI * Conclusions