Multinational Financial Management, Risk Management

Owing to the reasonable arrangement of resources economic resources advantages' mutual supplement of individual country as well as other outstanding merits, world economy unifying has become an unchangeable tendency. And being the result of internationalizing of producing and capital, multinational company is no doubt its main improving factor. After entry into WTO, China will become a dark horse in world economy, and being new economy growing point, multinational company will play more and more important roles in Chinese economy. Being one of the main managements, financial management plays a decisive role for the existence and improvement of multinational company. Among, the financial management of multinational company (FMMC) will face much more and bigger risks, for it's complicated financial managing environment from global managing strategy. To some extents, FMMC itself is a procedure predicting risks managing risks and even gain profit from risk controlling, which is one of the main required course for FMMC.The essay performed the demonstration and analysis from the following four aspects:1. The brand new understanding around financial management risks of FMMC. I analyzed how important this topic means to FMMC by means of two contrary cases. Besides, I also researched the characteristics of financial management risks, and more I expressed my new classification about financial management risks of multinational company.2. Rate Risks. Started from the raising of difficulties in rate risks researching, and aimed at the above, I analyzed the prediction and managing methods of rate risks with the special features of focusing on reality. I considered that multinational company should pick up the reasonable methods from those listed on #2 table, based on the scientific predicting rate.3. Political Risks. Also started from the raising of difficulties in political risks researching, I analyzed two kinds of predicting political risks methods and gave my suggestions on selecting. Afterwards, I focused on managing methods of political risks, and considered multinational company should make proper choice with the plentiful thinking around its current condition and the occurring time. In order to express my opinions clearly, I quoted many cases and made many comparing tables.4. Exchange Rate Risks. This is the most popular and hard topic for multinational company, the same its researching difficulties focused on exchange rate predicting and exchange rate risks managing. So I began with the predicting problem about exchange rate, and also made the new understanding around three different kinds of exchange rate risks: translation exposures transaction exposure as well as economic exposures. In order to highlight the characteristic of being pragmatic, I focused on managing methods aimed at three kinds of exchange rate risks with the help of many cases figures and tables, and hence raised my opinions around the above.Limited to the lack in theoretical level and practical experience, and adding to the difficulty in social investigation, there're some defects in essay such as not deep enough and so on. Humbly request your honored scholars and experts' advices.