Question : In what ways Multi National Corporation (MNC) different from other companies? Explain with an example
The correct answer is-
i. Domestic companies tend to restrict their operations to the country of origin, while
multinational corporations operate in more than two countries. Ex- Infosys
ii. Companies (Infosys) expand globally for many reasons, mostly to obtain new markets,
cheaper resources and reduction in operational costs, all of which significantly affect
financial management. These benefits also increase the risks faced by multinational
corporations.
iii. Multinational (Infosys) financial management differs from domestic financial management
in six essential ways
iv. Unlike their domestic financial management counterparts, multinationals are subject to
exchange rates that differ based on the prevailing inflation rate in the foreign countries where
they operate.
v. Any other point
