Multinational managerial finance requires that financial analyses consider the effects of changing currency values.

Question

Quizplus · Accepted Answer

Multinational companies operate in multiple countries with different currencies, therefore, financial analysis needs to consider the impact of currency fluctuations on their revenues, expenses, and overall profitability. Currency exchange rates can affect a company's competitiveness, access to capital, and any financial transactions between countries. Thus, multinational managerial finance requires the consideration of changing currency values.

Multinational Managerial Finance Requires That Financial Analyses Consider the Effects