The Choice Between Foreign Direct Investment and Export with Industry Competition and Marginal Cost

Autor:	Yung-Shun Tsai, Shyh-Weir Tzang, Zolzaya Batjargal, Chun-Ping Chang
Rok vydání:	2020
Předmět:	Marginal cost 050208 finance Computer science Process (engineering) 05 social sciences Foreign direct investment Real options theory Competition (economics) Microeconomics Exchange rate Investment decisions 0502 economics and business 050207 economics Externality
Zdroj:	Innovative Mobile and Internet Services in Ubiquitous Computing ISBN: 9783030503987 IMIS
Popis:	This paper uses real option theory to explicitly derive an optimal foreign investment rule. In the setting we characterize the investment decisions and give rise to a theoretic analysis of optimal foreign direct investment timing under exchange rate uncertainty with industry competition and firm marginal cost. This paper demonstrates the impact on the relevant economic variables and infer empirical implications to results. The model is extended to include an exit option and externalities, which have implications for divesting FDI and policy. This enriches the literature and captures model policy driven FDI as a dynamic process.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_________::83936d023c18b163359a52b8db939804 https://doi.org/10.1007/978-3-030-50399-4_49 Zobrazit plný text záznamu