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Optionen der Internationalisierung: Motive ausländischer Direktinvestitionen in einem neuen Licht
[Options of internationalisation: motives for foreign direct invetsment in a new light]

Author

Listed:
  • Gilroy, Bernard Michael
  • Lukas, Elmar

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.

Suggested Citation

  • Gilroy, Bernard Michael & Lukas, Elmar, 2004. "Optionen der Internationalisierung: Motive ausländischer Direktinvestitionen in einem neuen Licht
    [Options of internationalisation: motives for foreign direct invetsment in a new light]
    ," MPRA Paper 21539, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:21539
    as

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    File URL: https://mpra.ub.uni-muenchen.de/21539/1/MPRA_paper_21539.pdf
    File Function: original version
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    References listed on IDEAS

    as
    1. Peter J Buckley & Mark C Casson, 1998. "Models of the Multinational Enterprise," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 29(1), pages 21-44, March.
    2. Robert C. Merton, 2005. "Theory of rational option pricing," World Scientific Book Chapters,in: Theory Of Valuation, chapter 8, pages 229-288 World Scientific Publishing Co. Pte. Ltd..
    3. Gilroy, Bernard Michael & Lukas, Elmar, 2002. "The New Agenda for FDI: Evidence from South Korea and Germany," MPRA Paper 17970, University Library of Munich, Germany.
    4. Black, Fischer & Scholes, Myron S, 1973. "The Pricing of Options and Corporate Liabilities," Journal of Political Economy, University of Chicago Press, vol. 81(3), pages 637-654, May-June.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    internationalisation; foreign direct investment; real option approach;

    JEL classification:

    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements

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