1
Group 5
Introduction of
International
Corporate Finance
CHEN CHIA I
Teacher: Mrs. Karen
2,512 words
Introduction of International Corporate Finance
Corporations indicate extraordinary financial management challenges in
International or worldwide business activity. Corporate finance has been used to
observe if the company can utilize financing channels effectively, obtain financial
capital at lower cost, and form an appropriate capital structure; including business
investment, profit distribution and financial analysis.(Jordan B. D., 2011; Morten H.,
2010) On the other hand, global issues influence the financial regulatory practices in
many aspects, including companies, authorities, and financial establishments. Global
corporations are also known as multinational corporations (MNCs), however, global
factors such as currency values affect many domestic companies as well as MNCs. A
foreign industry can occur by competition with overseas firms, having foreign
consumers, or using foreign suppliers. As long as they refer to some overseas activity,
corporations are constrained by the effect of international elements. This essay will
cover the background and identify various ways in which globalization happens and
why this is important for firms. Furthermore, it will describe the Foreign Direct
Investment Strategy that MNCs use to operate their company. In particular, it
discusses the risks which affect MNCs such as, currency risk, economic risk, political
and regulatory risk and variation in business practices. Second, it discusses the goals
