Measuring the impact of political risk on investment projects is one of the most vexing issues in international business. One popular approach is to assume that the sovereign yield spread captures political risk and to augment the project discount rate by this spread. We show that this approach...

We build a Real Options model to assess the importance of private provision and the impact of expropriation risk on investment timing, investment volumes, governmental costs and social welfare. We consider two types of businesses (essential and non essential businesses) and two stages (operating...

Since World War II six risk-sharing institutions to stimulate foreign investment have been established by the U.S. government and several international organizations. These are thoroughly studied.Originally published in 1965.The Princeton Legacy Library uses the latest print-on-demand technology...