After studying this chapter, you should be able to:
Discuss the importance of cross-border investment.
Understand the concept of capital budgeting and analyse the factors considered during cash-flow estimation.
Distinguish between foreign projects and domestic projects in terms of cash flows.
Discuss the approaches to project evaluation and highlight the difference between the net present value (NPV) approach and the adjusted present value (APV) approach.
Gain insight into the risks involved in cross-border investments.
Define various risk-handling techniques.
Understand the concept of real options.
Business firms can enter foreign markets through exports, license ...