Optionen der Internationalisierung: Motive ausländischer Direktinvestitionen in einem neuen Licht

Gilroy, Bernard Michael and Lukas, Elmar (2004): Optionen der Internationalisierung: Motive ausländischer Direktinvestitionen in einem neuen Licht.

Abstract

The application of theorectical option pricing evaluation procedures for the analysis of real investment decisions indicates a new trend in the classical theory of investment and finance. In this regard, the formative term of the real option approach subsumes three basic attributes of investment decisions: irreversibility, operational flexibility and uncertainty, and brings them together in an economically quantifiable context. The reseach focus aims at applying the methodology to the existing theory of foreign direct investment (FDI). This also comprises the attempt to reason the heterogenity concerning the choice of market cultivation as well as market entry strategies and the therewith affiliated location decisions of multinational enterprises in an economically rational manner.

• Item Type: MPRA Paper
• English Title: Options of internationalisation: motives for foreign direct invetsment in a new light
• Language: German
• Keywords: internationalisation; foreign direct investment; real option approach
• Subjects: G - Financial Economics > G1 - General Financial Markets > G11 - Portfolio Choice ; Investment Decisions; F - International Economics > F2 - International Factor Movements and International Business > F21 - International Investment ; Long-Term Capital Movements

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