Direct versus Indirect Foreign Investment from Transition Economies: Is There a Difference in Parent Company/Home Country Impact?

2019 ◽  
pp. 91-108 ◽  
Author(s):  
Wilfried Altzinger ◽  
Christian Bellak ◽  
Andreja Jaklič ◽  
Matija Rojec
Keyword(s):  
Transition Economies ◽  
Foreign Investment ◽  
Home Country ◽  
Parent Company

scholarly journals Home country institutions and exports of firms in transition economies: Does innovation matter?

2021 ◽  
pp. 102087
Author(s):  
Virginia Hernández ◽  
María Jesús Nieto ◽  
Alicia Rodríguez
Keyword(s):  
Transition Economies ◽  
Home Country

Evaluating Foreign Direct Investment Projects

2018 ◽  
pp. 193-239
Keyword(s):  
Foreign Direct Investment ◽  
Host Country ◽  
Direct Investment ◽  
Home Country ◽  
Investment Project ◽  
Cash Flows ◽  
Parent Company ◽  
Investment Projects ◽  
Country Level ◽  
At Home

As explained in the foregoing chapter, once the relevant cash outflows and inflows associated with a foreign direct investment project are estimated so as to calculate the net cash flows, the desirability of the investment project should then be determined in terms of its economic profitability. Therefore, in this chapter the methods widely used in evaluating investment projects are discussed and their advantages as well as shortcomings are highlighted. Later in the chapter, evaluating foreign direct investment projects from the viewpoint of the parent company is elaborated in terms of profit and/or income transferred to the home country. The same investment evaluation techniques were applied to the net cash flows transferred to the home country of the parent company. The possible income and/or dividends to be remitted to the home country of a parent company are identified and discussed so as to reflect the viewpoints of investing parent companies when planning foreign direct investments. This two-level evaluation approach is generally followed in practice to make sure that direct investments are profitable at both host and home country levels, since an investment project that is not profitable at host country level would not be profitable at home country level either or a project that is profitable at host country level may not be profitable at home country level.

Strangers Are Not All Danger

2017 ◽  
Author(s):  
Di Wang
Keyword(s):  
Foreign Investment ◽  
Energy Security ◽  
Alternative Model ◽  
Home Country ◽  
State Ownership ◽  
Energy Industry ◽  
Strategic Objectives ◽  
Poor Countries ◽  
Foreign Acquisitions ◽  
Bilateral Relations

Sovereign wealth fund (SWF) investment in strategic industries has raiseumerous concerns. While state ownership may motivate SWFs to pursue strategic interests on behalf of the home government, other governments can have different strategic objectives. It suggests that SWFs may behave differently even when investing in strategic industries. This chapter illustrates the heterogeneity of SWF investment in the energy industry and argues that SWFs from energy-poor countries are more likely to invest in the energy industry compared to other types of investors in pursuit of energy security for the home country. Foreign investment in the energy industry is likely to face greater resistance by the host country than investment in other industries. This would increase with the deterioration of bilateral relations, especially for SWFs from energy-poor countries. Empirical analysis of 6,382 foreign acquisitions between 1992 and 2012 support these claims. These results are robust against alternative model specifications and variable measurements.

The impact of home country institutions on new venture export: examining new ventures in transition economies

2014 ◽  
Vol 11 (4) ◽  
pp. 823-848 ◽  
Author(s):  
Mina Lee ◽  
Xiaoli Yin ◽  
Seunghyun Lee ◽  
David H Weng ◽  
Michael Peng
Keyword(s):  
Transition Economies ◽  
Home Country ◽  
New Ventures ◽  
New Venture ◽  
The Impact

scholarly journals Risk Analysis in Project Evaluation

2018 ◽  
pp. 240-296
Keyword(s):  
Risk Analysis ◽  
Foreign Investment ◽  
Political Risk ◽  
Investment Project ◽  
Parent Company ◽  
Foreign Direct Investments ◽  
Currency Exchange ◽  
Currency Exchange Rate ◽  
High Level

This final chapter is devoted to the analysis of the risks associated with foreign direct investments, namely business (commercial) risk, political risk, and currency exchange rate risk. Each risk factor is considered as a separate evaluation criterion. That is, an investment project may be rejected due to having a high level of any one of these three risk factors. For instance, a profitable investment proposal may not have a significant business risk but might have a high level of political risk requiring its rejection. Risk analysis is conducted only if a foreign investment project is profitable from the viewpoint of the parent company. Otherwise, there is no need for a risk analysis since a direct investment project that does not create profit for the parent company would be rejected anyway.

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