Operations of Multinational companies spans across many countries around the globe. The resources they deal with are enormous in volume. They manage resources to the tune of billions of dollars. Therefore, to manage such a volume of resources it is very important to have specialised people on the job. The method that multinational companies follow to manage their finances differs from businesses smaller in size compared to them. Methods of finance management also differ between various multinational companies themselves. The primary factors that multinationals has to take into account while dealing with finance is that their business spans across many countries at one time. Different countries have different laws in such regard. So they have to manage their resources keeping in mind the laws of particular countries in mind & at the same time in a manner which suits their organizational purpose the most. This is the primary area where finance management operations of MNCs differ from other businesses.
Understanding Finance Management:
Different MNCs deploy different operational procedures when it comes to managing their finances. So it is very important that both the investor, no matter how big or small, & the managers know the very basic of finance management of MNCs. Finance management of MNCs varies according to many factors which normally influences the market. Since MNCs operate in many countries at the same time they have to customise their financial practices keeping in mind the laws of those countries. MNCs also handle customers & investors from various countries.