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    Globalization and Finance in Multinational Firms

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    How has globalization affected financial aspects of multinational firms? How has the Internet created new business opportunities in the global marketplace? Does globalization make sense in all organizations? Why or why not?

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    Globalization and Finance in Multinational Firms

    In all aspects of existing social life i.e. from cultural to the criminal or from financial to the spiritual, a wide, deep and speeding worldwide interconnection is globalization (International Monetary Fund Staff, 2002). Due to the globalization, industries have accounted for an increasing fraction on international trade and world GDP. This ultimately increases the foreign exchange reserves and autonomous wealth funds (Lane & Milesi-Ferretti, 2008).

    Globalization and financial aspects of Multinational firms are directly proportional to each other's. If there is an increase in the cost of production at home, company looks for places where cost of production is reasonable. The various drivers of globalization such as cost, technology, political factors, market environment ...

    Solution Summary

    This solution discusses how globalization has affected the financial aspects of multinational firms.