Real options: Batch process and market entry/exit decisions under uncertainty

Asia-Pacific Journal of Operational Research

Volumn 21, Issue 1, 2004, Pages 35-52

  Lin, Chin Tsai ^a   Wu, Cheng Ru ^a  

^a MING CHUAN UNIVERSITY   (Taiwan)

Author keywords

Batch process; Entry and exit; Exchange rate uncertainty; International business; Real options

Indexed keywords

BATCH PROCESS; EXCHANGE RATE UNCERTAINITY; INTERNATIONAL BUSINESS; REAL OPTIONS;

DECISION MAKING; ECONOMICS; MANUFACTURE; MATHEMATICAL MODELS; OPTIMIZATION; PRODUCTIVITY;

INTERNATIONAL TRADE;

EID: 4444298252     PISSN: 02175959     EISSN: None     Source Type: Journal    
DOI: 10.1142/S0217595904000023     Document Type: Article

References (23)

1. Abel, AB (1983). Optimal investment under uncertainty. The American Economic Review, 73, 228-233.
2. Anderson, E and H Gatignon (1986). Modes of foreign entry: a transaction cost analysis and propositions. Journal of International Business Studies, 17(3), 1-26.
3. Blonigen, BA (1997). Firm specific assets and the link between exchange rate and foreign direct investment. American Economic Review, 87, 447-465.
4. Dasu, S and L Li (1997). Optimal operating policies in the presence of exchange rate variability. Management Science, 43, 705-722.
5. Dixit, AK (1989a). Hysteresis, import penetration and exchange rate pass through. Quarterly Journal of Economics, 104, 205-228.
6. Dixit, AK (1989b). Entry and exit decisions under uncertainty. Journal of Political Economy, 97, 620-638.
7. Dixit, AK and RS Pindyck (1994). Investment under Uncertainty. New Jersey: Princeton University Press.
8. Dunning, JH (1998). Location and the multinational enterprise: a neglected factor. Journal of International Business Studies, 29, 45-66.
9. Frankel, J and R Meese (1987). Are exchange rates excessively variable? In NBER Macroeconomics Annual, Vol.2, S Fisher (ed.), 117-152. Chicago: The University of Chicago Press.
10. Gomes, CB (1989). Ownership sructure of foreign subsidiaries: theory and evidence. Journal of Economics and Behavior Organization, 11, 1-25.
11. Harrington, KR (1986). Matching vertical integration strategies to competitive conditions. Strategic Management Journal, 7, 535-555.
12. Hennart, JF (1986). A transaction cost theory of equity joint ventures. Strategic Management Journal, 7, 36-74.
13. Hill, CW, P Hwang and CH Kim (1990). An eclectic theory of the choice of international entry mode. Strategic Management Journal, 11, 117-128.
14. Huchzermeier, A and MA Cohen (1996). Valuing operational flexibility under exchange rate risk. Operation Research, 44, 100-113.
15. Lin, CT, TR Lin and CR Wu (2002). The decision for the optimal location in the batch process model under uncertainty of exchange rate: the application of real options approach. Journal of Management and System, 9, 173-196.
16. Klebaner, FC (1998). Introduction to Stochastic Calculus with Applications. New Jersey: Imperial College Press.
17. Kogut, B (1988). Joint ventures: theoretical and empirical perspectives. Strategic Management Journal, 9, 319-332.
18. Kouvelis, P, K Axarloglou and V Sinha (2001). Exchange rates and the choice of ownership sructure of production facilities. Management Science, 47, 1063-1080.
19. Kogut, B and K Kulatilaka (1994). Operating flexibility, global manufacturing, and the option value of a multinational network. Management Science, 40, 123-139.
20. Shi, Y and M Gregory (1998). International manufacturing networks - to develop global competitive capabilities. Journal of Operations Management, 16, 195-214.
21. Tallman, SB (1991). Strategic management models and resource-based strategies among MNEs in a host market. Strategic Management Journal, 12, 69-82.
22. Tomlin, KM (1998). Three essays on foreign direct investment: model specification, exchange rate skewness and entry plant size and growth. PhD dissertation, University of Oregon, Eugene, OR.
23. Trigeorgis, L (1995). Real Option in Capital Investment Models, Strategies, and Application. Westport: Praeger.