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Essay / Research Paper Abstract
This 22 page paper examines many of the challenges faced by multinational corporations in terms of the international money markets, investment decisions and the general role of treasury management, The paper looks at interest rate and exchange rates fluctuation risk, considering the causes of volatility and the potential of hedging and then explores the use of different investment assessment tools, including Net Present Value (NPV), Internal Rate of Return (IRR)and payback analysis. The bibliography cites 10 sources.
Page Count:
22 pages (~225 words per page)
File: TS14_TEmultifinance.rtf
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Unformatted sample text from the term paper:
1. Introduction Multinational companies face many challenges as a result of the international aspect of their businesses. Issues such as culture, language and
geographical barriers may be the influences that come to mind, but these are only one aspect. The main reason businesses become multinational is to increase value for shareholders by increasing
sales and the bottom line. It may be argued that becoming an international company is currently fashionable, but there is also little doubt that international expansion can be a very
valuable move, increasing not only revenue but also creating a spread of risk to diversify the business. The underlying principle of all strategies will eventually be measured in financial terms.
Multinational firms have a lot of challenges, from treasury management of assets, exchange rate risks and management of those risk and investment decisions.
Treasury management is the "set of policies, strategies and transactions that a company adopts and implements to raise finance at acceptable cost and risk, to manage its cash resources,
and to reduce interest rate, foreign exchange and commodity price risks, as well as in the conduct of its relationships with its financial stakeholders" (Lloyds, 2006). This is a god
summary of many of the challenges that a company in the international environment faces. In this paper we will consider some of
these challenges and the way that multinational firms may choose to deal with the challenges in order to gain a balance of risk and reward that is acceptable, looking at
what the risk is and how it manifests and the decision that a company has to make in order to deal with the risks. 2. Money Markets The main risks
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