Cross-border Investment Decisions
After studying this chapter, you should be able to:
- Discuss the importance of cross-border investment.
- Understand the concept of capital budgeting.
- Estimate the cash flows associated with a project.
- Distinguish between foreign projects and domestic projects in terms of cash flows.
- Discuss the approaches to project evaluation.
- 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 agreements, investments, strategic alliances, or a combination of these routes. In the case of exports, the exporting firm transfers ...