Instruments of risk mitigation play an important role in managing country risk within the foreign direct investment … (FDI) decision. Our study assesses country risk by state-dependent preferences and introduces futures contracts as a tool … of risk mitigation. We show that country risk assessments related to foreign direct investment do not matter if the …

. Given a new risk situation, whether a revision of the hedging-strategy is appropriate will depend upon the elasticity of …Based upon the foundations of mean-variance decision-making theory, we demonstrate that a change in the risk situation … of an international enterprise open currency position does not inevitably require a corresponding hedging accommodation …