INTERNATIONAL FINANCIAL MANAGEMENT

International Financial Management

International Financial Management

Introduction

Multinational company is most often a large corporation that has established several overseas subsidiaries in several countries with a dominant strategy and is expanded around the world. After the creation of multinationals has been controversy over the various definitions we have of it, some define it as any company that keeps economic transactions on more than one country, others say this should not be limited only to holding operations outside the borders, but must also have capital and personnel from different countries. We find different types of corporations that exist that are ethnocentric firm: they target your nation and its subsidiaries are controlled by the matrix , the system is according to accounting practices used in the country of origin, there is a domain permanent parent; polycentric company: We present a decentralization in which it allows the development of the accounting practices of each of its subsidiaries which the parent expected economic returns; company geocentric: the design systems of accounting that are affordable to systems of all countries involved in it and place in search of the benefit of all, your design is done based on the systems of most developed countries and the standards international.

Discsussion

The definition of impact refers to the action and effect of impact. This implies a significant change to the world; this change may have both negative connotations as positive. Perhaps the most important impact of the MNEs on the various economies is illustrated from the process of investment that they made. Immediately after the Second World War, FDI was concentrated in the commodities sector, a situation that gradually changed until the current situation, in which MNEs retain most of the exports of manufactured goods and the sector continues to spread services. These companies have the opportunity to raise capital for investment he made from a variety of sources increased.

The growing importance of FDI in production means that nationalization would deprive an economy of flows in which the new technology. On the other hand, this competition to be recipient of FDI in the service of the MNEs generates various national privatization processes. Investment contributed by the MNEs contributes to growth and employment in the countries that are fortunate enough to attract it. However, some people believe that this phenomenon may be temporarily. But if we compare the figures of the top 100 companies for 1993 and 1997, it is found that these companies have increased their turnover by almost 20%, while decreasing the number of employees.

The MNEs provide jobs, directly and indirectly to not less than 10% of the global workforce potentially available. In developing countries, MNEs employ not less than 2% of people who does not have jobs. There are many changes in industrial relations from the reduction and loss of government action in regulating them. There is a re-allocation of production and mobility of the industries that lead to denationalization of labor law systems. The effects of these changes are recognized as favorable as it is followed by ...