Research On Risk Assessment And Control Of Overseas Investment Project

Along with the pace of economic globalization being fast, the economy competition between nations is fierce and the transnational investment shall evolve into the chief battlefield. However, there are lumping risks for overseas investment because of the differences such as in language, cultural, economic development and political environment among nations. These risks are characterized by objectivity, coexistence, diversity, complexity and so on. It is significant for overseas enterprises to identify, assess and deal with the risks of overseas investment project.China's overseas investment is developing fast in recent years although it is in the primary phase. Many enterprises have invested or have prepared to invest overseas. It is worthy of noticing that there are many problems about China's overseas investment. Much more projects failed rather than succeeding. One of the important reasons is that there are no effective assessment and control on the risks of overseas investment.The two-step risk assessment model has been put forward based of analyzing the concepts, characteristics, species and assessment theory of overseas investment project's risks. The first step computes the whole risk of overseas investment project with the method of synthetical assessment. The second step assesses the economic risks of overseas investment from the aspect of economic results with the method of probability analysis with expected value. Finally this thesis puts forward detailed methods for controlling the risks of overseas investment project from government and enterprise. Besides, the corresponding strategies on managing different risks are given.