Mgmt

Financial Management in Multinational Corporations

Abstract

Multinational corporations are global entities that operate in foreign lands and have a parent company in the original land-based country. The objective is to acquire additional profit by operating and selling the company’s product globally. The laws, regulations, and trade barriers are at the very least less strict and make it easier to access this form of additional revenue. The advantage of multinational organizations is the global access to increased monetary profit. The disadvantage is the non- profits that complain that the companies come in and cause destruction to the local economy and culture.

In this paper the focus will be on the motivation and human resources aspect of multinational corporations with regard to profit, capital budgeting benefits and policy. There is no right or wrong thinking when it comes to business operating in foreign countries. The global construct of individuals of both the parent company and those that reside within that particular company is to work together and follow the mission that has been established as well as garner maximum profit.

Table of Contents

I. Introduction p.4

II. Motivation p.6

III. Policy p.7

IV. Conclusion

V. References

Financial Management in Multinational Corporations

A multinational corporation is defined as a headquarters that is in one country and operates fully or partially owned subsidiaries within other countries. Those subsidiaries report information to the central headquarters. These operations have grown in both number and size and have caused some controversy due to their economic and political power, mobility and complexity of their operations. Some have...