Internalization and internationalization under copeting real options

The theories of internalization and internationalization provide general factors of international market entry but are not precise about its timing. A model of waiting and growth options seizes the importance of flexibility to FDI decisions and centers the impact of uncertainty. The results of a panel study using aggregates of 5379 German entries to 22 countries suggest that uncertainty has a U-shaped influence on the probability of entry and a negative effect on the amount of capital whereas it leaves the share in capital unaffected. Investors seem to treat foreign subsidiaries as real options on internationalization but not on internalization.

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Year of publication:	2006
Authors:	Fisch, Jan Hendrik
Publisher:	Frankfurt a. M. : Deutsche Bundesbank
Subject:	Internationale Markteintrittsstrategie \| Realoption \| Entscheidung bei Unsicherheit \| Direktinvestition \| Joint Venture \| Auslandsniederlassung \| Schätzung \| Theorie \| Deutsch \| OECD-Staaten \| Foreign Direct Investment \| Market Entry Mode \| Real Options \| Uncertainty \| Timing

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Series:	Discussion Paper Series 1 ; 2006,15
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Working Paper
Language:	English
Other identifiers:	51427350X [GVK] hdl:10419/19643 [Handle] RePEc:zbw:bubdp1:4354 [RePEc]
Classification:	D92 - Intertemporal Firm Choice and Growth, Investment, or Financing ; F21 - International Investment; Long-Term Capital Movements ; L60 - Industry Studies: Manufacturing. General ; D81 - Criteria for Decision-Making under Risk and Uncertainty
Source:	EconStor

Persistent link: https://www.econbiz.de/10010295803