Question

Just like domestic financial management, the goal of multinational finance is also to maximize the shareholder’s wealth. Can you think of any areas where the goals may differ between domestic and multinational finance?

Answer 1

• Domestic financial performance aims to maintain a versatile financial reporting as per home country standards whereas in multinational , reporting standards should be as per globally acceptable norms.
• Translation risk is not there in domestic financial reporting but in multinational finance reprotings should be done either in home currency or international currency with least possible volatility.
• Balance sheet exposure is higher in multinational case.

MNC managers are supposed to make decisions that optimiseAccordingly, stock prices and represent shareholders. MNCs are now focused on
shareholders who are happy to be able to get shareholder funds more quickly

Support their operations. There is a distinction between a corporation and an organisationPower and possession. Consider the company as the collection of agreements.

The residual claim (equity) on the company's assets and cash flow is one of the contract statements.

The equity arrangement is a partnership between principal agent and agent. The directors are the officers ofShareholders will behave in the shareholders' best interests

Management is guided to achieve a variety of objectives and goals, including
Controversy between both. These disputes occur because the organisation has many
Components such as inventors, workers , clients, creditors , suppliers and businesses

Local community whose wishes don't coincide necessarily. That is the administration

Responsibility to fulfil these particular wishes. The opposing aims therefore

The dilemma of setting goals occurs when faced with management.