Abstract
Transnational investment is featured by its large scale and high risks. During transnational investment, the frequent risks often bring a huge loss to the investors. Therefore, the risk factors should be included in the economic evaluation of transnational investment projects. However, the existing evaluation models and systems are rather complex, lacking a unified framework. Besides, there are few practical applications of these models or systems. To solve the problem, this paper explores the factors and economic evaluation of transnational investment risks. Firstly, an economic evaluation system was constructed for transnational investment projects, and the economic evaluation result was depicted in two aspects: economic income factors and investment risk factors. Then, the applicability and economic meanings of common indices were clarified one after another. After that, the economic evaluation flow was designed for risk-based transnational investment projects. Finally, an economic evaluation was performed on actual projects, which verifies the feasibility of the proposed evaluation method.
Highlights
China is poised to witness a fast and large-scale development of transnational investment, which is featured by its large scale and high risks [1,2,3,4,5,6,7]
The frequent risks often bring a huge loss to the investors [15,16,17]. erefore, the risk factors should be included in the economic evaluation of transnational investment projects, and the selection mechanism should be improved to choose transnational investment projects that satisfy multiple feasibility and risk conditions. ese measures are critical to the correct execution of investment decisions
Since the launch of the Belt and Road Initiative, China has been speeding up the export of infrastructure. rough a multicase research, Huang et al [18] summarized the lessons learned from overseas hydropower investment projects and provided some managerial insights to Chinese enterprises, banks, and governments investing in foreign infrastructure
Summary
Glorious Sun School of Business and Management, Donghua University, Shanghai 200051, China. Erefore, the risk factors should be included in the economic evaluation of transnational investment projects. The existing evaluation models and systems are rather complex, lacking a unified framework. There are few practical applications of these models or systems. This paper explores the factors and economic evaluation of transnational investment risks. An economic evaluation system was constructed for transnational investment projects, and the economic evaluation result was depicted in two aspects: economic income factors and investment risk factors. En, the applicability and economic meanings of common indices were clarified one after another. The economic evaluation flow was designed for risk-based transnational investment projects. An economic evaluation was performed on actual projects, which verifies the feasibility of the proposed evaluation method
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