Strategic Foreign Direct Investment and Exchange‐Rate Uncertainty
研究汇率不确定性如何影响风险中性跨国公司的外国直接投资决策，发现足够的汇率波动会促使公司开设多家工厂以增加预期利润，并可能阻止当地竞争者进入。
We investigate how exchange‐rate uncertainty affects the foreign direct investment decision of a risk‐neutral multinational firm (MNF). We assume the firm can open plants, each with decreasing average costs, in two different countries. Under certainty, the MNF would open only one plant. We demonstrate that with sufficient exchange‐rate volatility, the firm can increase expected profits by opening several plants. We also show that if the MNF faces a competitor in the foreign market, the exchange risk, by inducing the MNF to open plants in both markets, may prevent entry by the local competitor.