Chapter 21, Problem 7CRCT

Summary Introduction

To determine: The specific relevance of the multinationals domestic currency.

Introduction:

The companies with an important foreign operations are often termed as the international corporations or the multinational companies. The multinational companies have to consider the various financial features that do not affect the domestic companies. The various factors are the varying rate of interest from one country to another, foreign exchange rate, foreign tax rate, typical accounting methods, and the foreign government intervention.