The authors show that the potential benefit to a host country of forward markets or of foreign exchange guarantees depend on the investor's country of origin and on specific characteristics of investment. They show this in terms of the effects on foreign-exchange risks and on the amount of foreign direct investment taking place. Their main lessons for foreign investors: (a) the benefits of hedging exchange risks through forward markets vary substantially...
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INFORMATION
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1994/08/31
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Document de travail de recherche sur les politiques
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WPS1344
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1
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1
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2010/07/01
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Disclosed
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Which foreign investors worry about foreign exchange risk in South Asia and why?
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return to education
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