Factors and Economic Evaluation of Transnational Investment Risks

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...

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Bibliographic Details
Main Authors: Guanghui Xiong, Lei Wang
Format: article
Language:EN
Published: Hindawi Limited 2021
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Online Access:https://doaj.org/article/01f63ac74cda416a9994bc3cfa8ce626
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Summary: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.