The price can be influenced by factors:

Ability to capture information

Endogenou

When the MNE is able to invest in the host environment to discover the trend of market demand and supply.

WOS and JV have more ability to capture information due to ownership advantages.

To calculate the option value, we will introduce the parameter B that represents the capture of additional benefits from reduced uncertainty.

Exogenous

The market price of a product is often influenced by local government regulations and interventions.

The smaller the B parameter, the more the uncertainty is exogenous, and the larger it is, the more the uncertainty is endogenous.