A Review of Theory Concerning Risk and the Foreign Investment Decision

Colin White and Miao Fan

Chapter 2 in Risk and Foreign Direct Investment, 2006, pp 7-22 from Palgrave Macmillan

Abstract: Abstract This chapter considers the platform of existing theory on which an acceptable treatment of risk and FDI can be built.1 It is appropriate to consider at some length the way in which risk is treated in the financial literature and to show its limited relevance to the appraisal of foreign direct investment. It is also necessary to place the FDI decision in the context of the investment decision-making process in general.

Keywords: Foreign Direct Investment; Risk Premium; Market Return; Capital Asset Price Model; Risk Control (search for similar items in EconPapers)
Date: 2006
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-0-230-62483-2_2

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DOI: 10.1057/9780230624832_2

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