Slide MGT411 Slide01

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Chapter 2

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The Multinational Enterprise

(MNE)

• _{A multinational enterprise (MNE) is defined as}

one that has operating subsidiaries, branches or affiliates located in foreign countries.

• _{The ownership of some MNEs is so dispersed}

internationally that they are known as

transnational corporations.

• The transnationals are usually managed from a global perspective rather than from the

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Multinational Business Finance

• _{While multinational business finance}

emphasizes MNEs, purely domestic firms also often have significant international activities:

– _{Import & export of products, components and}

services

– _{Licensing of foreign firms to conduct their foreign}

business

– _{Exposure to foreign competition in the domestic}

market

– _{Indirect exposure to international risks through}