premium that do not rely on the analysis of historical data. The use of implied equity premiums derived from equity market valuation models is one possibility which is identified. Second, more investigation is required of the reasons for regional differences observed in MNEs' stated risk management objectives and revealed risk management practices. Third, attention must be given to the appropriate procedures MNEs should adopt when implementing internal risk management processes such as cash-flow-at-risk or variants of value-at-risk. Fourth, the implications of differences in capital costs arising from equity market segmentation (Oxelheim et al. 1998 ; Cooper and Kaplanis 2000) on the motives for FDI and its impact upon competition in international product markets needs investigating. Finally, a case has been made that financing considerations are a relevant, but largely neglected, determinant of the choice of mode of market entry. Further attention should be paid to this issue, particularly in the light of recent findings that certain mechanisms for market entry appear to reduce corporate value.
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