What is the difference between international management and domestic management?

Answer 1

Financial Management DifferencesAmong the few differences between financial management of a multinational company (MNC) and domestic company (DC) is that the MNC has got operations around the world. This means they have to deal with an international group of customers, shareholders and suppliers. What this means is that they are exposed to exchange rate changes, issues about raising capital internationally, and also different accounting standards of reporting. In my opinion, the most important difference between an MNC and DC is the exchange rate. The MNC have to take consideration into exchange rate fluctuations, as it affects their sales and investment decisions ( exchange rate changes will change their revenue from customers and also make investment decisions difficult, as they have to constantly convert back to their home country and see if the return is higher or if the investment is worth it ). It also affects the way they report their financial statements, which is balance sheet or profit and loss. The MNC faces more difficulty in reporting this, as they have various standards to follow. ( for example, how should they report the profit or loss for the year, in a foreign currency or home currency. Either way, it tells us different things about the MNC, as they can be making money in the home currency, but losing money in the foreign currency ). Generally speaking, the financial management for an MNC has to deal with the larger external influence affecting the company, and a large part of books for Multinational Financial Management or International Financial Management, deal with exchange rates.

Answer 2

a. The term management is defined as the process of completing activities efficiently a with and through other individuals. This process consists of the functions or activities usually labeled planning, organizing, staffing, coordinating (leading and motivating), and controlling. The management process is affected by the organization's home country environment, which includes the shareholders, creditors, customers, employees, government, and community, as well as, economic, technological, demographic, and geographic factors.(pg.1)

b. Managers of enterprises, who attain their goals and objectives across unique multicultural, multinational boundaries, which produce international corporations, multinational corporations (MNCs), or global corporations, apply international management. The process of international management is affected by the environment where the organization is based, as well as by the unique culture, including views on ethics and social responsibility, existing in the country where it conducts its business activities.(pg.1)

Carl Rodrigues, International Management : A Cultural Approach, 3rd ed. (Los Angeles: Sage Publications, 2009).

posted by Dr. Dale Allen

Answer 3

how is international financial Mgmt. different financial Mgmt.