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A fuzzy approach for the estimation of foreign investment risk based on values of rating indices

  • Simona HaškováEmail author
  • Petr Fiala
Original Article
  • 6 Downloads

Abstract

The paper discusses the uncertainty resulting from vagueness. Within this topic we present an original version of the fuzzy approach to a foreign investment risk estimation based on values of rating indices. The transition from the basic point values of rating indices into the linguistic values within intervals of linguistic variables of fuzzy logic enables us to take into account the diverse kinds of uncertainty. The theoretical and methodological part submits fundamentals of the general fuzzy model of the vaguely defined problem, which is applied to the problem of the foreign investment “risk” estimation of selected countries of Europe and Asia. The inclusion of a country into one of the categories (“high risk countries”, “conditional risk countries” and “non-risk countries”) is based on a vector of value indexes of the sub-components of business environment quality (corrupt environment, economic stability and political stability).

Keywords

Fuzzy approach Foreign investment risk Rating indices Business quality 

Notes

Acknowledgement

This work was supported by the [University of Economics, Prague] under Grant [number IGA F4/57/2019].

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Copyright information

© Springer Nature Limited 2019

Authors and Affiliations

  1. 1.Institute of Technology and Business in České BudějoviceČeské BudějoviceCzech Republic
  2. 2.University of Economics, PraguePrague 3Czech Republic

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