해외직접투자의 전략적 평가 : 스프레드시트를 이용한 실물옵션접근법

Strategic Valuation of Foreign Direct Investment : Option Pricing Approaches Using Computer Spreadsheets

This Paper evaluates the value of strategic flexibility to the profitability of foreign direct investment project under increasing uncertainties according to the growing internalization processes of firms, analyzes the main motives and the changes in entry modes to foreign markets to derive the methods to minimize risk and acquire strategic capabilities. Accordingly, we identify the concepts and properties of real option approaches and analyze their application methods to make the strategic planning for calibrating the performances of flexibility and maximizing the beneficial effects of new market entry. Especially, we present the detailed processes of calculation and the analytic results of the real option valuation based on the binomial lattice models with the Microsoft Excel. As well, we make the scenarios for possible case study and implement the thoroughly applications of real option models to defer, expand, abandon, and compound on the same base case and their appropriate modifications to derive the business policy implications. Concludingly, it is desirable to make the long-run range plan together with their medium and short-run sub-plans for implementing successful foreign investment projects to prepare for the unforeseen events and opportunities and maximizing the utilization records of strategic flexibilities with the compound option strategies.