International Finance Essay

5524 words - 23 pages

[

Introduction to Multinational Companies (MNC’s):
The word MNC’s is the short form of Multinational Corporation. As its name, MNC’s is a corporation spreads out one nation to another. Business involve into Multinational Corporation, so that they can capitalize on opportunities. The financial managers must be able to detect opportunities, asset exposure to risk and manage the risk.
Definition of Multinational Companies (MNC’s):
A corporation that has facilities and other assets in at least one country beside its home country is considered as Multinational Corporation. Such companies have offices and/or factories in different countries and usually have a centralized head office where they ...view middle of the document...

After the above discussion we can get the following characteristics of MNC:

1. International business.
2. Multiple nations.
3. Large in size.
4. Centralized Head office.
5. International investing and financing.
6. International financial management.

Some important objectives of MNC:

1. Maximization of shareholders wealth
2. Expansion of financial market
3. Economic development

Some examples:

1. Hitachi Ltd. :
Hitachi Ltd. is a Japanese multinational engineering and electronics conglomerate company headquartered in Chiyoda, Tokyo, Japan. It is the parent of the Hitachi Group and forms part of the DKB Group of companies. Hitachi is a diversified company and has 11 business segments: Information and Telecommunication Systems, Electrical Systems, Social and Industrial Systems, Automotive Systems, Electronic Component Devices, Construction, and Financial services.

2. Unilever :
Unilever is an Anglo–Dutch multinational consumer goods company. Its products include foods, beverages, cleaning agents and personal care products. It is the world's third-largest consumer goods company measured by 2011 revenues (after Procter & Gamble and Nestlé) and the world's largest maker of ice cream. Unilever owns over 400 brands, amongst the largest selling of which are Aviance, Axe/Lynx, Ben & Jerry's, Dove, Flora/Becel, Heartbrand, Hellmann's, Knorr, Lipton, Lux/Radox, Omo/Surf, Rexona/Sure, Sunsilk, Toni & Guy, TRESemmé, VO5 and Wish-Bone. It is a dual-listed company consisting of Unilever N.V., based in Rotterdam, Netherlands, and Unilever PLC, based in London, United Kingdom. Both companies have the same directors and they operate as a single business.

3. LG Corporation :
LG Corporation is a South Korean multinational conglomerate corporation. It is the fourth-largest company of its kind in South Korea. Its headquarters are situated in the LG Twin Towers building in Yeouido-dong, Yeongdeungpo-gu,Seoul. LG makes electronics, chemicals, and telecom products and operates subsidiaries such as LG Electronics, Zenith, LG Display, LG Telecom and LG Chem. in over 80 countries.

4. Nike Inc. :
Nike Inc. is an American multinational corporation that is engaged in the design, development and worldwide marketing and selling of footwear, apparel, equipment, accessories and services. The company is headquartered near Beaverton, Oregon, in the Portland metropolitan area, and is one of only two Fortune 500 companies headquartered in Oregon. It is the world's leading supplier of athletic shoes and apparel and a major manufacturer of sports equipment

In the light of the above discussion, we can say that Multinational Company (MNC) is one that spans multiple nations; these Companies are often very large. Such companies have offices and/or factories in different countries. They usually have a centralized head office where they coordinate global management. Multinationals often make use of subcontractors to produce certain goods for them.
...

Other assignments on International Finance

International Finance Management Answer 1 Essay

667 words - 3 pages FINC3011 Tutorial 1 B&H Chapter 2 Questions 1, 2, 3, 4, 5, 6 & 9 1. What is an exchange rate? Answer: An exchange rate is the relative price of two currencies, like the U.S. dollar price of the euro, the Thai baht price of the Malaysian ringgit, or the Mexican peso price of the Canadian dollar. 2. What is the structure of the foreign exchange market? Is it like the New York Stock Exchange? Answer: The interbank foreign exchange market is a

International Trade And Finance Speech Eco 372

1402 words - 6 pages Efficiency and Collaboration Proposal BIS/220 October 19, 2011 Efficiency and Collaboration Proposal Party Plates has grown significantly within the last two years and the current Excel system, excel, cannot keep up with all data. In order to improve the efficiency of the current information systems used in Party Plates, the antiquated system needs to be upgraded to a much more efficient system such as Microsoft Access. The

Imba

797 words - 4 pages A B. Finance Specialization Requirements (12 semester hours): Term Two (spring) | | | IMB 531 Portfolio Analysis and Management I: Equity | (2) | | IMB 532 Portfolio Analysis and Management II: Fixed Income | (2) | | IMB 533 Portfolio Analysis and Management III: Derivatives and Financial Risk Management | (2) | | IMB 536 Global Macroeconomic Trends and Financial Institutions or CSB Elective | (1) | | IMB 534 International

Justification Report

506 words - 3 pages To Mr.Wang According to my research to current economic journals in market, I recommend ‘American Economic Review’ as the magazine our company should order for employers to read. We are a public company; our employers should not only focus on their own work, but also have some knowledge of economic or finance to assist CEO to make right decisions for company, and enhance their comprehensive working ability. I have chosen three journals to

Bus3062

690 words - 3 pages companies; International finance—involves investors, companies, business operations, and capital markets that may be located in different companies(Cornett, Adair, & Nofsinger, 2014,). 2. What are the three basic forms of business ownership? What are the advantages and disadvantages to each" (Cornett, Adair, & Nofsinger, 2014, p. 21)? Partnership is an organizational form that has multiple individual owners. Each partner can own a

Case Study

347 words - 2 pages account transactions. While the World Bank’s role was to finance post war reconstruction in devastated economies and thereby to promote long term economic stability. There are powers that should be granted to these international institutions. First is the voting power at both IMF & the World Bank. Another is dollar as a centerpiece of the new international exchange rate mechanism. And lastly, these are the one who will give basis on what domestic

International Political Economy

285 words - 2 pages significant work examining the results of trade deals), development, the relationship between democracy and markets, international finance, global markets, multi-state cooperation in solving trans-border economic problems, and the structural balance of power between and among states and institutions. Unlike conventional international relations, power is understood to be both economic and political, which are interrelated in a complex manner. IPE emerged as a heterodox approach to international studies during the 1970s as the 1973 world oil crisis and the breakdown of the Bretton Woods system alerted academics, particularly in the U.S., of the...

Public Finana

2612 words - 11 pages Public finance is sometimes synonymous with government finance. It deals with budgeting the revenues and expenditures of a public sector entity, usually government. Public finance also can be defined as the raising of money by governments through taxes or borrowing and the spending of it. In Japan, the national budget and other basic matters on public finance are governed by the Public Finance Law, 1947 (Law No. 34, Apr. 31, 1947), which has

Banking

1394 words - 6 pages FRBM ECS EDMU EEA EEC EEFC FRN FSS FWG x Manual on Financial and Banking Statistics Abbreviations GDP GDR GFD GFS GIC GLS GNIE Gross Domestic Product Global Depository Receipt Gross Fiscal Deficit IFC IFC(W) IFCI International Finance Corporation International Finance Corporation (Washington) Industrial Finance Corporation of India Investment Fluctuation Reserve Account International Financial Statistics Iterative

Mr Praveen

862 words - 4 pages international business will be an integral part of my job as an entrepreneur, it is essential that I fill in these gaps. The NAME School's MBA program is the perfect bridge from where I am to where I want to be. I am attracted by the inventiveness and uniqueness of its entrepreneurial and finance programs, and believe that I will increase my practical knowledge of entrepreneurship by interacting with my classmates. I value the fact that at NAME

Rfdytc

536 words - 3 pages , and the importance of trust. Environmental Perspective - Speakers are selected to provide a historical perspective of NASA’s evolution and to illuminate key business environments such as Congress and the international and commercial space sectors. Finance - With the implementation of full cost accounting, NASA is changing its internal financial practices to become more like industry. In a four-hour session, attendees are given a summary course on

Similar Documents

International Finance Essay

876 words - 4 pages International Finance May 10, 2015 U.S International Debt Please look at the International part of the U.S. Government debt and discuss, 1) why the country has had to rely on International lenders, 2) why the situation with the International lenders may have caused the U.S. Federal Reserve System to initiate Quantitative Easing, and 3) give your opinion of the possible future state of the U.S. economy as it relies on International lenders

International Finance Essay

1171 words - 5 pages Dozier Hedging Alternatives Forward Market Hedge: Dozier would purchase U.S. dollars under a forward contract. The contract would obligate Dozier to pay £1,057,500 in exchange for £1,057,500 x 1.4198 $/£ = $1,501,438.50 assuming the transaction was at the quoted 3-month forward rate in Exhibit 4. Relative to the value of the contract at the current exchange rate, £1,057,500 x 1.4370 $/£ = $1,519,627.50 Dozier would

International Finance Essay

625 words - 3 pages decrease exchange rate volatility. Thus, they intervene because changes in the exchange rates that occur can affect the health of their markets and financial systems as well as inflation and economic growth, and they of course don't want that. 4. What is fundamental analysis in macroeconomics, not finance? Fundamental analysis (in macroeconomics) looks to measure the value of an investment by examining related economic factors. These factors include rate of inflation, interest rates, GDP rate, and unemployment level. Fundamental analysts assess the overall conditions of an economy to understand any and all factors that may affect the value of an investment. 

International Trade And Finance Speach Essay

357 words - 2 pages Exports: Chrysler, Ford and GM are the top automotive manufacturers in America. When the top three automobile manufacturers began to see a decline in their sales, shortly afterwards it lead to a trade deficit and soon after that a drop in employment (Thompson, 2010). When America cannot sell goods to other countries this causes a surplus of domestic goods. In the case of automobiles if there is a surplus there production will slow and