NEW FINANCIAL PRIORITIES FOR MNC'S

THE WORLD'S MARKETPLACE IS NO LONGER THE SMALL, TIDY, U.S.-DOLLAR-DOMINATED ARENA THAT IT ONCE WAS. IN THE LAST FIVE YEARS, THE NUMBER OF COUNTRIES VYING WITH THE U.S. FOR ECONOMIC SUPERIORITY HAS INCREASED DRAMATICALLY, THE DOLLAR HAS LOST ITS TIMELESS ACCEPTABILITY AND CURRENCY EXCHANGE RATES HAVE BECOME ALMOST IMPOSSIBLE TO FORECAST. IN THIS SETTING, WHERE THE RISKS ARE RISKIER BUT THE OPPORTUNITIES ENORMOUS, AN MNC THAT WANTS TO COMPETE SUCCESSFULLY HAD BETTER SHARPEN ITS INTERNATIONAL FINANCE FUNCTION. THE AUTHORS SUGGEST THAT THIS WILL INVOLVE DECENTRALIZING THE FINANCE FUNCTION TO SOME EXTENT TO ENSURE IMMEDIATE ACCESS TO AND USE OF FOREIGN CAPITAL INFORMATION. ALSO, SYSTEMS TO MONITOR THE CHANGING CURRENCY VALUES AND POLICIES TO ACCOMODATE SHIFTING FINANCIAL/POLITICAL PARAMETERS WILL BE NEEDED. TO ASSIST MNC'S TOP-MANAGEMENTS TO COMPETE IN TOMORROW'S GLOBAL MARKET, THE AUTHORS PROVIDE A CHECKLIST OF ITEMS THAT EVERY INTERNATIONAL FINANCE FUNCTION OUGHT TO EMPLOY. CHARTS.