Dewit, Gerda
(2002)
Risky Business: Multinationals, uncertainty and asymmetric Insurance.
Economica, 69.
pp. 357-370.
ISSN 0013-0427
Abstract
Risk management is vital to multinational enterprises (MNEs) facing
uncertainty in foreign markets. One strand of the MNE literature
demonstrates this by showing how various risks for which insurance does
not exist
alters MNEs’ international production decisions compared with
when they operate under certainty. Other work deals with sources of
uncertainty against which firms can hedge in financial markets.
In this paper
MNE behaviour is examined in the presence of risks for which insurance
markets are missing but public insurance schemes are available instead. Such
insurance schemes differ in one important respect from the coverage
mechanisms available in financial markets. In forward and futures markets,
firms can typically hedge without restrictions. By contrast, owing to the
government’s involvement, public insurance alternatives tend to lack the
global character of financial markets and often include explicit support for
domestic economic activities.
| Item Type: |
Article
|
| Keywords: |
Risky Business: Multinationals;
Asymmetric Insurance; |
| Academic Unit: |
Faculty of Social Sciences > Economics, Finance and Accounting |
| Item ID: |
8442 |
| Depositing User: |
Gerda Dewit
|
| Date Deposited: |
12 Jul 2017 10:57 |
| Journal or Publication Title: |
Economica |
| Publisher: |
Wiley |
| Refereed: |
Yes |
| URI: |
|
| Use Licence: |
This item is available under a Creative Commons Attribution Non Commercial Share Alike Licence (CC BY-NC-SA). Details of this licence are available
here |
Repository Staff Only(login required)
 |
Item control page |
Downloads per month over past year
Origin of downloads
Altmetric
Altmetric