The importance of multination corporations and the globalisation of production are now well recognized. Multinational corporations have become central actors of the world economy and, in linking foreign direct investment, trade, technology and finance, they are a driving force of economic growth. Since the world is reduced to an electronic village and global finance has become a reality, therefore in a contemporary global corporation financial capital is one of the most fungible assets to cross national boundaries. The determinants of the way in which transnational corporation acquire, organize and manage those assets is of critical importance, not only to the success of those corporations, but also to the development and industrial restructuring of nation states. The task of international financial manager is to make the best possible tactical decision that the market has to offer on liabilities, within the strategic funding constraints set by currency denomination, maturity, and capital structure. Sounds like a Herculean agenda? Yes, but domestic financial management is difficult too, and many of the techniques are transferable. The place to start learning about international financial management is therefore to gain a basic understanding of what and how financial decisions affect the value of the firm.
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