Internalization and internationalization under copeting real options

Arbeitspapier

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.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Discussion Paper Series 1 ; No. 2006,15

Classification and Topics

• Classification: Wirtschaft ; International Investment; Long-term Capital Movements ; Industry Studies: Manufacturing: General ; Criteria for Decision-Making under Risk and Uncertainty
• Subject: Foreign Direct Investment ; Market Entry Mode ; Real Options ; Uncertainty ; Timing ; Internationale Markteintrittsstrategie ; Realoption ; Entscheidung bei Unsicherheit ; Direktinvestition ; Joint Venture ; Auslandsniederlassung ; Schätzung ; Theorie ; Deutsch ; OECD-Staaten

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Fisch, Jan Hendrik
• Event: Veröffentlichung
• (who): Deutsche Bundesbank
• (where): Frankfurt a. M.
• (when): 2006

Further information

• Handle: http://hdl.handle.net/10419/19643
• Last update: 10.03.2025, 11:45 AM CET