Explore BrainMass

Risks faced by Multinationals

I have a paper to write about two risks that face multinational corporations. I'm just looking for two hundred words to get started.

Solution Preview

Step 1

The first risk that multinational corporations face is the risk of fluctuation of currency rates. These corporations are likely to suffer serious losses because of currency fluctuation. For example, a branch in a foreign country purchases goods worth $1 million dollars when the exchange rate is $1: 25 local currencies. However, when the delivery is made and the payment has to be done the ...

Solution Summary

This solution explains risks faced by multinationals. The sources used are also included in the solution.