3 edition of Financial control of multinational operations. found in the catalog.
Bibliography: p. 206-225.
|Statement||Financial Executives Research Foundation|
|Publishers||Financial Executives Research Foundation|
|The Physical Object|
|Pagination||xvi, 125 p. :|
|Number of Pages||75|
nodata File Size: 5MB.
However, transnational companies often face criticisms when they avoid higher tax rates, form monopolies, and cause smaller businesses in the region to suffer. ; Kihn due to their high acceptance and comparability across countries Dossi and Patelli ; Kraus and Lind ; Moilanen. First, article characteristics like country of origin and research design were collected.
; Fernandez-Revuelta Perez and Robson ; Frow et al. A centralized management style strives to intensely monitor operational business in order to inform decision makers at headquarters Kranias ; Quattrone and Hopper. Moreover, the subsidiary environment, in particular culture 13 and environmental uncertainty 13has increasingly gained research attention. Accounting for Political and Economic Risk Companies that locate operations in foreign countries face a set of unavoidable risks, chief among which are political and economic risks.
A decentralized structure lets multinational firms exploit local knowledge and business conditions to deal with uncertainty.
Hillier et al 2010 note that as a result of this feature, futures contracts have no default risk while forward contracts suffer from high default risk.Abdallah and Alnamri ; Coates et al. Relatively conservative approach that can be used by firms to o penetrate markets by exporting o obtain supplies at a low cost by importing• Coordinating with a foreign partner adds complexity to managing and controlling non-domestic activities and therefore joint ventures represent a specific organizational context Ding.
Outflows include expenses such as expenses incurred from transferring technology or funding partial investment in a franchise or joint venture.
In general, MC is tighter when the importance of a subsidiary in terms of size or investment is high Chang and Taylor ; Dong et al. ; Frucot and Shearon ; Hassel and Cunningham. Budgeting processes draw on communication and information flows between headquarters and subsidiaries. One alternative investment strategy, musharakah, allows profit and loss sharing.
The challenges are the unique risks and variables the manager has to contend with which his or her domestic counterpart does not have to worry about.
Multinational business Much like transnational companies, multinational businesses have locations or facilities in multiple countries.
The purpose of this so-called bundled corporate governance is in direct relation to the principle of value maximization, in which the bundle of corporate governance mechanisms is designed in order that the benefits and advantages from the bundle monitoring and bonding mechanisms can be achieved with the minimum possible costs.