Instruments of risk mitigation play an important role in managing country risk within the foreign direct investment … of risk mitigation. We show that country risk assessments related to foreign direct investment do not matter if the … multinational firm enters currency futures markets. Besides currency risk, multinationals cross-hedge country risk via the …

investment and the LDC gov-ernment offers a package specifying taxes and sharing rules by a JV contract. Such sharing rules can … be designed to enhance the level of optimal investment under the presence of distortions and asymmetric information. We …