Financial Management in Multinational Organizations Research Paper

Financial Management in Multinational Organizations - Research Paper Example Financial management helps organizations in financial planning and control and evaluation of risks. It has been rightly argued that maximizing shareholder value perhaps only the most effective method to benefit every stakeholder. Multinational organizations are firms that take part in some type of global business. Their financial management involves global investing as well as financing choices that are planned to capitalize on the worth of the multinational organization. Firms may primarily try to sell products abroad to a specific nation or trade supplies in from an overseas producer. However, in due course, a number of them identify further prospects and finally start subsidiaries within foreign nations. International financial management is vital even for firms that have no global dealings. These firms are required to be familiar with how their overseas rivals will be influenced by activities within â€Å"exchange rates, foreign interest rate, labor costs† (Kyaw et al, 201 1, p. 21), and price rises. Therefore, contradictory goals increase the issue of setting priorities. When tough competition exists within the home country, a business may rely on entering or expanding its overseas base. Nonetheless, if a corporation is ineffective within the home market, it is expected to have difficulties in a foreign country also. Additionally, the controller should be aware of local traditions as well as risks within the global markets. A large, stable corporation with considerable global experience may ultimately have completely owned subsidiaries. On the other hand, a small business with restricted foreign understanding functioning in uncertain fields may be limited to export and import operations. If the corporation`s sales force has nominal knowledge in export sales, it is wise to employ foreign agents when expert understanding of foreign markets is considered necessary. When adequate amount exists, the corporation may set up a foreign branch sales office tog ether with the sales group as well as technical service workers. When the function establishes, manufacturing services may be positioned within the foreign market. Nonetheless, a number of foreign nations need authorization earlier than foreign sales and production can go on; here, a â€Å"foreign licensee sells and produces the product† (Li & Tallman, 2011, p. 56). A setback with this is that classified data and understanding are provided to the licensees who can then turn into a rival at the termination of the contract.

I totally understand where your coming from and this is why Personal Statement

I totally understand where your coming from and this is why - Personal Statement Example Thus, the red menace acted like a buffer in keeping the arms race going on and in keeping the business of the two Super Powers from running out. It is as if the two countries had a great degree of understanding in planning and executing the way the Cold War progressed. Indeed, it looks like a game played skillfully with an ulterior business motive. As Eric Berne observes in his book Games People Play: The Psychology of Human Relationships, â€Å"War is the grimmest of all games† (50). It is interesting to think what the history of the last half of the twentieth century would have been like, had Roosevelt been alive a little longer. Perhaps Hiroshima would not have been destroyed. Perhaps the Truman Doctrine and the Marshall Plan would not have been necessary. But these are idle thoughts, not of any consequence. It is hard to buy the notion that the US disinterestedly spent billions for the ‘reconstruction of Europe’. It can only be as true as philanthropy is for h elping the poor. It was politically and commercially motivated and the red menace provided a pretext for the maneuvers. The projected pretext ultimately melts down to a joke with Russia joining the NATO in 1992. Today it matters little whether the red menace was notional or real. What is important is whether its contribution to the world was good or bad.