Financing the Multinational Corporation and Its Cost of Capital

Abstract

The objective of this chapter is the financial management of multinational corporations (MNCs), international corporations (INCs), or multinational enterprises (MNEs) that have operations in more than one country and are conducting their business through foreign affiliates, subsidiaries, branches, representative offices, joint ventures, and other structures in the host countries. These MNCs move to other markets for cheaper labor, for exploiting raw materials, for outsourcing their manufacturing process, and for increasing their market shares, their revenue, and their profits without any constrains, which is their ultimate objective. Governance, regulations, and controls of MNCs are considered together with business ethics, social responsibility, executive pay, and criticism of our international firms.