Access the full text.
Sign up today, get DeepDyve free for 14 days.
Loading next page...
/lp/wiley/batch-process-and-transfer-decisions-in-foreign-market-a-real-options-GNfKY0Y9yN
References (11)
-
A. Dixit (1989)
Entry and Exit Decisions under UncertaintyJournal of Political Economy, 97
-
Eduardo Schwartz, A. Dixit, R. Pindyck (1994)
Investment Under Uncertainty.Journal of Finance, 49
-
Campa Campa (1993)
Entry by foreign firms in the U.S. under exchange rate uncertaintyReview of Economics and Statistics, 75
-
L. Trigeorgis (1995)
Real Options in Capital Investment: Models, Strategies, and Applications -
Lin Lin, Wu Wu
Optimizing location under exchange rate uncertainty: applying real optionsJournal of Information and Optimization Sciences
-
J. Campa (1993)
Entry by foreign firms in the United States under exchange rate uncertaintyThe Review of Economics and Statistics, 75
-
Abel Abel (1983)
Optimal Investment under uncertaintyThe American Economic Review, 173
-
Bruce Blonigen (2019)
Firm-Specific Assets and the Link Between Exchange Rates and Foreign Direct InvestmentWorld Scientific Studies in International Economics
-
A. Dixit (1989)
Hysteresis, Import Penetration, and Exchange Rate Pass-ThroughQuarterly Journal of Economics, 104
-
Blonigen Blonigen (1997)
Firm specific assets and the link between exchange rate and foreign direct investmentAmerican Economic Review, 87
-
Lin Lin, Lin Lin, Wu Wu (2002)
The decision for the optimal location in the batch process model under uncertainty of exchange rate: the application of real options approachJournal of Management and Systems, 9
- Publisher
- Wiley
- Copyright
- Copyright © 2002 John Wiley & Sons, Ltd.
- ISSN
- 1524-1904
- eISSN
- 1526-4025
- DOI
- 10.1002/asmb.487
- Publisher site
- See Article on Publisher Site
Abstract
This investigation extends the constant elasticity of substitution (CES) batch process production model of Lin et al. (J. Management syst. 2002; 9: 173) for an uncertain exchange rate by considering an export‐oriented manufacturer who can decide to switch freely between domestic and foreign locations. The export‐oriented manufacturer is risk averse and has rational expectations. As the entry cost declines, the export‐oriented manufacturer's entry trigger for the CES production function increases for transferring from a domestic and to a foreign location. Additionally, the manufacturer's exit trigger for CES production function increases for transferring from a foreign and to a domestic location. Moreover, the exit cost resembles the entry cost. Copyright © 2002 John Wiley & Sons, Ltd.
Journal
Applied Stochastic Models in Business and Industry – Wiley
Published: Apr 1, 2003