Managing Multinational Corporations: Goals and Risks

Subject: Management
Pages: 1
Words: 380
Reading time:
2 min
Study level: Master

Managing multinational corporations (MNC) is a complex process requiring profound knowledge in administration. Moreover, one needs to accomplish a list of objectives to be a successful manager. These goals include developing strategies and risks assessment since international cooperation is connected with several hazards. This paper aims to analyze the essential objectives for MNC’s management, the purpose of WTO and G8, and the international monetary system.

Primarily, it is vital to assess different types of foreign exchange exposure potentially faced by the MNC and identify its risks. Achieving this goal supports the managers’ success as they will be able to choose the profitable way to conduct transactions and, as a result, maximize the company’s profit, market value, and net cash flow (Arize et al., 2018). Ignoring this factor can lead to heavy losses while conducting international transactions, as one may use unfavorable currency fluctuations for deception.

Due to globalization, MNCs are undergoing significant changes, and assessing their consequences is another goal for managers. This goal is essential, as by tracking the necessary trends and policies, managers will contribute to companies’ expansion and power increase (Kyove et al., 2021). If the manager does not evaluate globalizations’s implications on the firm, it may fall behind the relevant developmental tendencies and lose its competitive ability.

It is vital to assess the structure of international financial markets and institutions, the range of instruments traded therein, and understand the operation of the international financial market. Accomplishing these objectives will lead to the proper financial performance and efficient usage of legal aspects of a particular territory. Otherwise, the manager risks making invalid monetary decisions, causing financial losses to the company, or missing opportunities for its development.

MNCs play a significant role in international financial relations and politics. Thus, there are some organizations to assist and control corporations. World Trade Organization (WTO) aims to establish balanced economic interconnection between countries and their international organizations (Wu, 2019). The Group of Eight (G8) has a similar purpose, and it also plays a role of a foothold for a conversation between leading countries. WTO and G8 play a neutral position for multinational organizations as they focus on balancing the relationships. Finally, it is vital to understand the international monetary system as it involves realizing all the financial mechanisms of multinational cooperation.


Arize, A., Campanelli Andreopoulos, G., Kallianiotis, I. N., & Malindretos, J. (2018). MNC transactions foreign exchange exposure: An application. International Journal of Economics and Business Administration, 6(1), 54-60. Web.

Kyove, J., Streltsova, K., Odibo, U., & Cirella, G. T. (2021). Globalization Impact on Multinational Enterprises. World, 2(2), 216-230. Web.

Wu, Y. (2019). Reforming WTO rules on state-owned enterprises: In the context of SOEs receiving various advantages. Springer.