Home Part 1 THE UNCERTAINTY AND THE RISK – REORIENTATION FACTORS OF THE INVESTMENT STRATEGIES

THE UNCERTAINTY AND THE RISK – REORIENTATION FACTORS OF THE INVESTMENT STRATEGIES


Halmi Mirela Camelia PhD
Vasile Goldiş Arad, Baia Mare Branch


Abstract
The Foreign Direct Investment represents one of the ways to access a foreign market and to internationalize the activities. A company that decides to become international faces a number of risks that that have to be taken into account and analyzed. These risks are associated to the complete uncertainty regarding the business’ success that comprises many risks. The economic risk is linked mainly to the macroeconomic conditions of the host country like the real structure of the interest rate as well as to exchange rate’s movements and volatility.
The role of the risk’s instability is important having in view the fact that a great part of the influxes of foreign direct investments are towards emerging economies. As a result, an interesting problem that is worth being studied is the combined effect of the uncertainty and the risk on the foreign direct investment’s quantity and direction.
Key words: risk, uncertainty, foreign direct investment, instability

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