One kind of corporate international optimal investment and consumption choice problem

In this paper, we study a the specific hyperbolic absolute risk aversion (HARA) case of corporate international optimal portfolio and consumption choice problem. The investor can invest his wealth in a domestic bond (bank account). On the other hand, he can invest his money to a real project with production in a foreign country. Using the celebrated dynamical programming principle method we provide the explicit optimal investment and consumption solution and give some simulation results to illustrates the influence of the volatility parameters on the optimal choice.