addition to the accounting difficulties. By carefully taking into account the various capital markets involved, the rates of exchange and other considerations, companies can use the international market to lower their overall cost of capital. Similarly, profits can also be shifted in order to reduce the tax burden on the company.
Multinational finance managers also face risks and concerns that do not interest domestic financial managers (although in today's global marketplace, all companies should maintain a global perspective regardless of whether they are international or domestic in their own operations). These concerns can include exchange and inflation risks, different tax environments in different markets, currency controls, political risks, and tariff considerations.
When making decisions regarding the way in which activities are financed within a multinational company, the multinational financial executive must take into account the financi
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