Real options flexibility or risk diversification: risk management of US MNEs when facing risk of war

Purpose The purpose of this paper is to examine how the risk of war aroused by North Korea’s threatening actions trigger strategic responses from US multinational enterprises (MNEs) operating in South Korea. The authors compare two competing perspectives of real options and risk diversification to see which prevails when US MNEs are facing risk of war. Design/methodology/approach The authors hand collected news articles regarding North Korea’s...