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Slide Financial Management - Chapter 19

CHAPTER 19 Multinational Financial Management Multinational vs. domestic financial management Exchange rates and trading in foreign exchange International money and capital markets What is a multinational corporation? A corporation that operates in two or more countries. | CHAPTER 19 Multinational Financial QI Management Multinational vs. domestic financial management Exchange rates and trading in foreign exchange International money and capital markets 19-1 What is a multinational corporation A corporation that operates in two or more countries. Decision making within the corporation may be centralized in the home country or may be decentralized across the countries the corporation does business in. 19-2 Why do firms expand into other countries 1. To seek new markets. 2. To seek raw materials. 3. To seek new technology. 4. To seek production efficiency. 5. To avoid political and regulatory hurdles. 6. To diversify. .