The Real Options Theory Applied In The International Investment Decisions

This thesis is focused on the real options approach applied to international trades and investments. The main content includes the FDI theory with real options thinking; the export decisions in presence of exchange rate uncertainty and the switching decisions about international investment modes.In the chapter 1, a review is given about real options theory. We introduce the develop process from traditional DCF approach to real options theory combined with financial options valuation approach. And the emphasis is the literatures about real options , the basic concepts and the practically methods.In the chapter 2, we tried to establish a FDI theory combined with real options thinking. The traditional FDI theory is thinking over the problem from exterior environment, while our thinking is from the characteristic about FDI. We establish the basic point -the international productions' aim is pursuing the maximize of the net present value including real options' value. And we use this point to explain the reason of why FDI preferred to other international modes; the appearance of FDI's rapid increasing; OIL theory's limitation in ownership advantage; and give our advises about how to attract the overseas investment. Finally, Haier group is used as a example.In the chapter 3, we researched the exporting decisions in presence...