1. Financial Management in Multinational Organizations

Company owns the land and building or secures long-term leases for both Company-operated and conventional franchised restaurant sites . This maintains long-term occupancy rights helps control related costs and assists in alignment with franchisees (McDonald 's Corporation , 2009

.9 .Other Multinational firms may also decide based on the unfamiliarity of the economic environment may elect the host country to be its partner on a joint venture which in turn can help them be familiarized local economic conditions

Microsoft used licensing to ensure that their softwares would not be easily pirated or copied

if sold to foreign markets . Foreign direct investment via a merger or direct acquisition of an existing firm is also a common practice to have the advantages of large economies of scale and easy access of the new local markets

Debt

A healthy financial position of a multinational company can be assessed by its proper management of its debt . Managing debt could be a challenging task for any firm 's manager especially those working in a multinational firm , it is always best to ensure that there are enough revenues to even partially repay its debts , even with this challenge having a global corporation has also its own distinct advantages . An example is the Coca Cola which is currently enjoying the privilege of a global presence due to strong brand marketing , have licated access to key financial markets all over the world , this have helped them maintain debt levels by using their debt financing practice to lower overall cost of capital which in turns increase returns on shareowners equity (The Coca-Cola Company , 2009

.13 . This strategy is a fundamental part of managing debt for multinational companies firms also look at strong foreign currencies to operate to partly offset debt by repayment from gained profits . A company like McDonald...