Multinational Corporation

TABLE OF CONTENTS

INTRODUCTION. 3

TYPES OF FOREIGN EXCHANGE EXPOSURE. 5

Transaction Exposure 5

Translation Exposure. 6

Economic Exposure. 7

REASONS FOR MNC TO EXPAND GLOBALLY 8

To Seek for New Markets 8

To Seek New Resources 8

To Seek New Technology 9

To Seek Production Efficiency 9

Global Diversification. 9

FACTORS DISTINGUISH MULTINATIONAL FINANCIAL MANAGEMENT FROM DOMESTIC FINANCIAL MANAGEMENT. 10

Political Risk 10

Role of Government 10

Language Differences. 11

Cultural Differences. 11

Economic and Legal Ramifications 11

Different Currency Denominations. 12

CONCLUSION 12

REFERENCES. 13

MULTINATIONAL CORPORATION (MNC)

INTRODUCTION.

Multinational Corporation is any corporation or company which is registered and operates in more than one company at a time. Generally the corporation own its headquarters in one country and operates its business, derives its quarter of its revenue from operations outside of its home country where headquarter exist. A centralized head office (Headquarters) is essential to any Multinational corporation because its help to communicate and coordinate global management.

Multinational Corporation also known as Transnational Corporation. Very large Multinational Corporation have budget which exceed those of many small countries. America, Japan and Europe are well known for having many and big multinational companies such as Toshiba, Coca cola, and Nike etc. which play big role in increasing the economy.

Many scholars suggest that Multinational Companies helps to create job opportunities, wealth and improving technology in countries where are serious in need of it. It also helps to stimulate competition among many Corporations result to great product and high consumer satisfaction. However there are also critics concerning these corporations such as undue political influence over governments, can exploit developing countries as well as creating job losses in their home countries.

Lenovo is one...