Multinational Corporations and International Financial Management

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Which U.S. firms mentioned in the text conduct international business?

AMSCO International, Ferro, Interlake, Medtronic, Sybron, Synoptics

What percentage of U.S. firms that export have fewer than 100 employees?

Seventy-five percent

Why is international financial management important to U.S. companies with no international business?

To recognize the impact of economic characteristics on foreign competitors

What are some of the factors that can affect foreign competitors' costs of production and pricing policies?

Movements in exchange rates, foreign interest rates, labor costs, and inflation Signup and view all the answers

What is the goal of managers employed by multinational corporations (MNCs)?

Maximize the value of the firm Signup and view all the answers

Name one multinational corporation mentioned in the text.

Dow Chemical, IBM, Nike, Coca-Cola Co., ExxonMobil, Fortune Brands, Colgate-Palmolive Signup and view all the answers

What does international financial management for MNCs involve?

International investing and financing decisions Signup and view all the answers

What is a common way for firms to start engaging in international business?

Exporting products to a particular country or importing supplies from a foreign manufacturer Signup and view all the answers

In how many countries does the Coca-Cola Co. distribute its products?

More than 160 countries Signup and view all the answers

What percentage of its total annual operating income is typically generated outside the United States by the Coca-Cola Co.?

Over 60 percent Signup and view all the answers

What are some key economic factors that can impact the costs of production and pricing policies for foreign competitors?

Exchange rates, foreign interest rates, labor costs, and inflation Signup and view all the answers

What is the typical size of U.S. firms that engage in exporting?

Fewer than 100 employees Signup and view all the answers

Why is international financial management important to U.S. companies that do not have international business?

To recognize how their foreign competitors will be affected by economic characteristics such as exchange rates, foreign interest rates, labor costs, and inflation Signup and view all the answers

What is the focus of U.S. firms that conduct international business?

Niches that have made them successful in the United States Signup and view all the answers

What are the main goals of managers employed by multinational corporations (MNCs)?

Maximize the value of the firm Signup and view all the answers

Give an example of a multinational corporation that commonly generates more than half of its sales in foreign countries.

Coca-Cola Co. Signup and view all the answers

What is the typical distribution reach of the Coca-Cola Co. in terms of countries?

More than 160 countries Signup and view all the answers

Name one multinational corporation mentioned in the text that has more than half of its assets in foreign countries.

Dow Chemical, IBM, Nike Signup and view all the answers

What are some of the businesses mentioned in the text that commonly generate more than half of their sales in foreign countries?

ExxonMobil, Fortune Brands, ColgatePalmolive Signup and view all the answers

Why is international financial management crucial for multinational corporations (MNCs) engaging in international business?

To maximize the value of the MNC and make international investing and financing decisions Signup and view all the answers