The modern viewpoint favors multinational capital investment than the home country investment. However, studies show that there are many opportunities and risk factors to be considered, before deciding to invest in a foreign country especially in an emerging market(Meldrum.2000. Nagy,1984. Hooper,1994. Lehman, 1999, etc). This will be in addition to the risk factors for home country investment. Hence, a study on developing the criteria for evaluating an international investment in emerging markets has great relevance and policy implications.Studies have shown that the traditional beta factor based on Capital Asset Pricing Models (CAPM) has failed to explain the risks for international investment in emerging nations (Estrada, 2000). This is because the international version of CAPM is based on implicit assumptions like perfectly integrated capital markets and sane returns for assets with the same risks irrespective of their place of trading etc which do not hold good for the emerging markets(Harvey,1995. Bekaert,1995, etc). Several alternative methodologies like those based on risk factors have been developed for evaluating the attractiveness of international investment in emerging markets(Erb et al,1995.1996. Harvey,2005, etc). However, none of these have been able to provide screening criteria at the company level in these countries. Hence, this study attempts to develop a methodology to evaluate the attractiveness of international investment in emerging nations at the company level. The case study of the telecommunications industry in emerging markets is done in this regard.Emerging markets are found to be attractive destinations for international investment by many countries since they provide many opportunities like high returns, diminishing portfolio risk, many favorable political and economic factors conducive for foreign investment than the developing markets(Stoica, 2002).

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