Principles of Managerial Finance, 15th Edition
by Scott B. Smart, Chad J. Zutter, Lawrence J. Gitman
Summary
Focus on Value
The growing interdependence of world markets has increased the importance of international finance in managing the multinational company (MNC). As a result, the financial manager must deal with international issues related to taxes, financial markets, accounting and profit measurement and repatriation, exchange rate risks caused by doing business in more than one currency, political risks, financing (both debt and equity) and capital structure, short-term financing, cash management issues related to hedging and adjustments in operations, and merger and joint-venture opportunities.
The complexity of each of these issues is significantly greater for the multinational firm than for a purely domestic firm. Consequently, the ...
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