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Evaluation, Financing and Control of Overseas Projects

  • Richard J. Briston
  • Jack Liversidge

Abstract

There are many practical and theoretical factors which are likely to encourage the commencement of overseas operations. Among the practical factors which are likely to motivate a company to set up production facilities rather than exporting are the introduction of import controls or tariff barriers, excessive transport costs, government concessions and nationalistic pressure. The main theoretical inducement is the advantage offered by diversification, for it can be shown by portfolio theory that geographical diversification of a portfolio has a similar effect on the reduction of risk as that of industrial or project diversification. As a result companies are able to reduce the volatility of their returns by both geographical and industrial diversification. This chapter considers the factors which should be taken into account in the appraisal of overseas projects, the assessment of the optimal method of financing and the problems of control.

Keywords

Cash Flow Host Country Parent Company Transfer Price Spot Rate 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Richard J. Briston and Jack Liversidge 1979

Authors and Affiliations

  • Richard J. Briston
    • 1
  • Jack Liversidge
    • 2
  1. 1.University of StrathclydeUK
  2. 2.Leeds PolytechnicUK

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