This paper aimed to extend previous real option models to features of multinational firms' activities such as market competition and trade barriers. Few researchers have studied multinationals' optimal switching time from export to FDI using real options, and those who have done so have ignored trade policies and strategic interactions between firms. Yet, the presence of local competitors and trade costs influences the option value of waiting. We finnd that FDI in host countries with uncertain demand, strong competition and few barriers to trade will likely to be delayed with respect to immediate investment. In terms of policy implications, we nd that the trade and competition policies of host countries have lower deterrent e ffects on FDI when uncertainty is reduced.



Voir le document

Dernières publications

2018MO-02 MO
Baromètre CIRANO 2018 - La perception des risques au Québec
Ingrid Peignier et Nathalie de Marcellis-Warin
Voir le document

2018s-20 CS
Long-term Care Risk Misperceptions
M. Martin Boyer, Claude Fluet, Marie-Louise Leroux, Pierre-Carl Michaud et Philippe De Donder
Voir le document

2018RP-11 RP
The Value of Food Certification and Labels for Consumers in Québec (Canada)
Nathalie de Marcellis-Warin, Ingrid Peignier et Yoann Guntzburger
En savoir plus


Centre interuniversitaire de recherche en analyse des organisations
1130 rue Sherbrooke Ouest, suite 1400
Montréal, Québec (Canada) H3A 2M8
(514) 985-4000
(514) 985-4039
reception@cirano.qc.ca

© 2018 CIRANO. Tous droits réservés.



Partenaire de :