• Legal and economic structure – When multinational organizations expand its operations in different countries, it has to take into account the different laws and regulations of these specific countries and therefore their operations can become quite complicated due to the legal and economic structures of the specific countries. It may even be the case that the practices in the home country might be illegal in another country and therefore the company would need to adapt their legal and economic structures in order to be able to expand its business in different countries. An example for the same would include the payments made in order to fast forward a licensing contract in one country and this could be considered to be a bribe in another country. Therefore these companies need to learn to adapt to the legal and economic structures of different countries and incorporate the same into their own business structures. Often it occurs that these co...
... middle of paper ...
...t to the standards of the International Monetary Fund and this could prove to be a hindrance for the business organization, operating in foreign countries.
• Credit – Multinational organizations often take large loans in order to finance their businesses and therefore it is vulnerable to the lending rates offered by various banks in the different countries that they are operating in. Therefore, this is one factor that could have a large impact on the profitability of the multinational organization and as a result would cause distress to the financial management of the company.
Thus, in this paper, through above-mentioned points, we have discussed financial management for multinational corporations and how certain factors can have a large impact on the financial management, revenue, profitability and operations for the company, engaged in business operations overseas.
Need Writing Help?
Get feedback on grammar, clarity, concision and logic instantly.Check your paper »
- Introduction to International Financial Management Technology has played a large role in the world we live in. With the invention of the internet, telephones, airplanes and the like, we are more connected to other countries than ever before. With a click of a button we can purchase an iPad from Apple and have it delivered to our house within a week. Seems like an easy feat, but if you consider that iPad is coming directly from a factory in China rather that the home office in Cupertino, California, it is easier to understand the meaning of a global economy.... [tags: Corporation, Multinational corporation]
985 words (2.8 pages)
- Introduction Financial analysis gives the clear outlook of the performance parameters of an organization. It helps in evaluating and comparing the present as well past performance. This analysis is an important tool for the management, investors as well as the outsiders who deal with organization. This analysis presents the way of functioning and the direction in which an organization is moving. The analysis is done with the help of common size analysis, comparative analysis and Ratio Analysis. The analysis is done with the help of respective annual reports of the companies.... [tags: Balance sheet, Asset, Financial ratio, Revenue]
1636 words (4.7 pages)
- Ford Motor Company is an American multinational and second-largest U.S base automaker with headquarters in Dearborn, Michigan, manufacturing and distributing their products worldwide. The Ford Motor Company was founded by Henry Ford on June 16, 1903. Henry Ford succeeded in his mission to produce an affordable, efficient and reliable automobile for the masses when the company introduced its highly successful launch of the Model T. The success of the Model T and its high demand lead Ford Motor Company to develop innovative production methods including that standardized parts and, of course, the world’s first moving assembly line for cars.... [tags: Ford Motor Company, Alan Mulally, Assembly line]
997 words (2.8 pages)
- In the 21st century the economy is becoming more globalized and this is highly beneficial for large multi multinational corporation. Globalization is defined as “The worldwide movement toward economic, financial, trade, and communications integration” according to BusinessDictionary.com(n.d). Big business can gain a lot when they utilize the benefits brought by globalization. Also, they can benefit from the workplace diversity which often leads to an increase in productivity and creativity. While, all of this can be a benefit for huge business, but might be a risk for the small business.... [tags: Small business, Business, Marketing, Management]
1619 words (4.6 pages)
- Multinational Corporation (MNC) is a business organization whose activities are located in more than two countries and is the organizational form that defines foreign direct investment, which the form consist of country location where the form is incorporated and of the establishment of branches or subsidiaries in foreign countries (Kogut, 2001; Shah, F. A., Yusaf, D. M., Hussain, A., & Hussain, J., 2012); or it can simplify to say if there have cheap production cost are located in other countries, MNC will place their business in there to enjoy material resources (Bennett, 2002).... [tags: Licensing, Joint Ventures]
2406 words (6.9 pages)
- You may ask yourself what is international management. Well, international management is the practice of managing business operations in at least two or more countries. Professionals are familiar with the language culture, economic, and political environment, and business practices of countries in which multinational firms actively trade and invest. They also have the conceptual and analytical skills that are needed to formulate effective management strategies and policies to benefit all the firm’s constituents in today’s globally competitive environment.... [tags: Management, Business, Culture, Globalization]
1045 words (3 pages)
- Q2) With increasing globalization, interconnectivity and interdependence of international financial markets, the Demise of Enron Corp concept of adopting a harmonized language for financial reporting to boost and confidence in reporting and develop international comparability has become widespread. The adoption of International Financial Reporting Standards (from now on IFRS, which include old and revised IAS) was the approach selected by an unprecedented number of countries and enterprises around the world.... [tags: globization, argument, international ]
2576 words (7.4 pages)
- When I think of a financial manager, accountant quickly comes to mind. The role of accountant and financial manager are similar in several ways and often times they work closely together on various projects. The role of an Accountant is to ensure that their organization is run efficiently, make sure their records are accurate, and that their taxes are paid properly and on time. Accountants perform a broad range of accounting, auditing, tax, and consulting activities for their clients. They record and analyze the financial information of the companies for which they work.... [tags: Accounting Finance Business Management]
667 words (1.9 pages)
- Tirtha timalsina Globalization and international business context Globalization is the propensity of organizations, advancements, or methods of insight to spread all throughout the world, or the procedure of getting this going. The worldwide means global economy is in some cases referred to as a globalism, considered as a completely interconnected commercial centre, unrestricted by time zones or national limits. Due to the globalization nowadays international markets are growing rapidly and a lot of multinational companies are focusing their strategies to international customers.... [tags: Globalization, Multinational corporation, Nation]
980 words (2.8 pages)
- Supply chain management can become another tool for improving the company’s performance. It is especially advantageous in the case of financial activities, as it has been proved that the companies that learned to exploit it effectively as well increased their revenues, became more competitive, and gained more customers. The concept of supply chain refers to the whole set of activities that the company conducts to reach its consumer and supply them with the final product or service. It is believed that before the customers receives their good, it travels through the competence of various departments of one or even several organizations that are interconnected and work for the convenience of t... [tags: Supply chain management, Inventory, Supply chain]
1211 words (3.5 pages)