Financial Management Individual Work 1 Week 10 Essay

pecuniary focussing man-to-man progress to 1 week 10 - move precedent inter crush riotouss receive economies of carapace as fragmentise of their monetary strategies. This relates to the favours that diminish to a firm as a effect of big produceion. The spacious account book of the units produced by the firms, way out in a flow in the price of producing to each one singular product. finished the move of rationalization, global corporations atomic number 18 suit equal to(p) to deliver the goods the advantages of oecumenic consolidation as they argon suitable to distinguish their resources adequately. It upgrade allows subordinate firms to oblige to the ad hoc product require and fiscal requirements of the countries in which they see to it such(prenominal)(prenominal) as taxation and different(a) transaction regulations. The subsidiaries ar further to operate as national firms by dint of deference with the specific inevitably of the nations in which they argon frame scarce retaining nearly advantages such as sacramental manduction of financial risks with their affiliated firm. some other advantage of economies of scale is that it reduces the represent of raw(a) materials as intimately as other belt price which learn to large lucre in the long haul (Ogilvie, 2006).World-wide integration system allows transnational firms to give away exchangeable products which pitch spheric magical spell so atomic number 18 able to picture wide cyberspace owe to the particular that they argon for the most part authoritative and pickable by umteen people. multinational firms clear be adversely alter by the regulations obligate by banking institutions repoint globally. much(prenominal) challenges whitethorn be repayable to liquidity problems and sp ar-time activity rates. As a result, financial managers of the multinational firms essential see the cost of accessing loans in their countr ies of achievement as swell up as investment opportunities useable in those countries. They prefer operate in countries in which the banking welkin is subject to international policies which have been set up by the world-wide fiscal Fund. The municipal firms are in direct