Question

In what ways Multi-National Corporations (MNCs) different from other companies? Explain with an example.

Answer 1

1. Domestic firms typically limit their operations to their home country, whereas multinational corporations operate in more than two countries. Ex-Infosys.
2. Companies (Infosys) expand globally for a variety of reasons, the most common of which are to gain access to new markets, cheaper resources, and lower operational costs, all of which have a significant impact on financial management. These advantages also increase the risks that multinational corporations face.
3. In six key ways, multinational (Infosys) financial management differs from domestic financial management.
4. Unlike their domestic counterparts in financial management, multinationals are subject to exchange rates that vary depending on the inflation rate in the foreign countries where they operate.