
C h a p t e r
Chapter ObjeCtives
10
Cross-border Investment
Decisions
After studying this chapter, you should be able to:
1 Discuss the importance of cross-border investment.
2 Understand the concept of capital budgeting.
3 Estimate the cash flows associated with a project.
4 Distinguish between foreign projects and domestic projects in terms of cash flows.
5 Discuss the approaches to project evaluation.
6 Gain insight into the risks involved in cross-border investments.
7 Define various risk-handling techniques.
8 Understand the concept of real options.
Introduction
Business firms can enter foreign markets through exports, license ...