Companies go global for various reasons. Although becoming a multinational corporation provides prospects for high returns and diversification, it makes financial management more complicated for financial executives and managers. Based on your understanding of the factors that complicate financial management in multinational firms, complete the following statement: Compared to domestic corporations, multinational corporations have risk from exchange rate fluctuations. Multinational versus domestic financial management According to the Bureau of Economic Analysis, the growth of capital expenses made by U.S. companies internationally was higher than the growth of investments made in domestic U.S. markets ("Summary Estimates for Multinational Companies: Employment, Sales, and Capital Expenditures for 2010," http://www.bea.gov/ newsreleases/international/mnc/2012/mnc2010.htm). While these companies might follow similar processes and concepts, their financial management tactics distinguish firms that operate domestically only and firms that have international operations. Based on your understanding of the how these firms differ, identify which of the following are factors that affect multinational firms. Check all that apply. Universal business language used in all subsidiaries Varied tax laws that lead to different tax ramifications O Uniform global currency used in transactions O Language differences that make communication challenging among employees and managers O000
Companies go global for various reasons. Although becoming a multinational corporation provides prospects for high returns and diversification, it makes financial management more complicated for financial executives and managers. Based on your understanding of the factors that complicate financial management in multinational firms, complete the following statement: Compared to domestic corporations, multinational corporations have risk from exchange rate fluctuations. Multinational versus domestic financial management According to the Bureau of Economic Analysis, the growth of capital expenses made by U.S. companies internationally was higher than the growth of investments made in domestic U.S. markets ("Summary Estimates for Multinational Companies: Employment, Sales, and Capital Expenditures for 2010," http://www.bea.gov/ newsreleases/international/mnc/2012/mnc2010.htm). While these companies might follow similar processes and concepts, their financial management tactics distinguish firms that operate domestically only and firms that have international operations. Based on your understanding of the how these firms differ, identify which of the following are factors that affect multinational firms. Check all that apply. Universal business language used in all subsidiaries Varied tax laws that lead to different tax ramifications O Uniform global currency used in transactions O Language differences that make communication challenging among employees and managers O000
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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). While these companies might follow similar processes and concepts, their financial management tactics distinguish firms that operate domestically only and firms that have international operations.
Based on your understanding of how these firms differ, identify which of the following are factors that affect multinational firms. Check all that apply.
- [ ] Universal business language used in all subsidiaries
- [ ] Varied tax laws that lead to different tax ramifications
- [ ] Uniform global currency used in transactions
- [ ] Language differences that make communication challenging among employees and managers](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8e241797-399b-4dac-ab9c-2b3b625a3d13%2Ffce9c4f6-ebe2-42ba-a04f-a95100ed1f33%2Ftf76syb_processed.png&w=3840&q=75)
Transcribed Image Text:Companies go global for various reasons. Although becoming a multinational corporation provides prospects for high returns and diversification, it makes financial management more complicated for financial executives and managers. Based on your understanding of the factors that complicate financial management in multinational firms, complete the following statement:
Compared to domestic corporations, multinational corporations have __________ risk from exchange rate fluctuations.
**Multinational versus domestic financial management**
According to the Bureau of Economic Analysis, the growth of capital expenses made by U.S. companies internationally was higher than the growth of investments made in domestic U.S. markets (“Summary Estimates for Multinational Companies: Employment, Sales, and Capital Expenditures for 2010,” [http://www.bea.gov/newsreleases/international/mnc/2012/mnc2010.htm](http://www.bea.gov/newsreleases/international/mnc/2012/mnc2010.htm)). While these companies might follow similar processes and concepts, their financial management tactics distinguish firms that operate domestically only and firms that have international operations.
Based on your understanding of how these firms differ, identify which of the following are factors that affect multinational firms. Check all that apply.
- [ ] Universal business language used in all subsidiaries
- [ ] Varied tax laws that lead to different tax ramifications
- [ ] Uniform global currency used in transactions
- [ ] Language differences that make communication challenging among employees and managers
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