The Sensitivity Analysis of the International Investment Decision Model

Tsui-Yii Shih, Charles V. Trappey
2008 Open Operational Research Journal  
Johanson and Vahlne's research provides a starting point for building a model that suits general international investments and decision making processes. This research derives an integer programming investment decision model that also considers investment costs and the risk attitudes of firms. The sensitivity analysis of the revised model demonstrates how risk attitudes and investment costs influence the optimal investment decision. Compared to the cost factors, the influence of attitudes
more » ... risk are the key to the overall decision making process.
doi:10.2174/1874243200802010060 fatcat:jeyzaqkc7nb7nbx2mdimih7vou