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Risk, Trade, Recovery And The Consideration Of Real Options: The Imperative Coordination Of Policy, Marketing, And Finance In The Wake Of Catastrophe, Mark R. Manfredo, Clifford J. Shultz
Risk, Trade, Recovery And The Consideration Of Real Options: The Imperative Coordination Of Policy, Marketing, And Finance In The Wake Of Catastrophe, Mark R. Manfredo, Clifford J. Shultz
School of Business: Faculty Publications and Other Works
Recovery from societal and market catastrophe is a daunting process requiring multi-function, systemic, and long-term efforts. Humanitarian aid and donor assistance rarely are sufficient. Trade and other forms of direct investment in devastated markets offer another kind of recovery-assistance. Risks encountered in recovering economies however can deter firms wishing to invest. A real options framework is applied to examine the financial feasibility of trading with recovering economies; the framework is applied to the countries of the war-disintegrated, former Yugoslavia. The real options framework considers the value of managerial flexibility in the presence of risks. Implications for policy, marketing management and …