《Management Accounting 7th管理会计 Don R.Hansen》ch14.pptVIP

Chapter 1 - Management Accounting in the International Environment Multinational Corporation (MNC) A multinational corporation (MNC) is one that “does business in more than one country in such a volume that its well-being and growth rest in more than one country.” Importing and Exporting Importing is the process of bringing product in from a foreign country. Exporting is the process of shipping product to a foreign country. Foreign Trade Zones Foreign trade zones are areas near a customs port of entry that are physically on U.S. soil but considered to be outside U.S. commerce. Foreign Currency Exchange A Transaction Risk Example Advantages of Decentralizationin the MNC Environmental Factors Affecting Performance Evaluation in the MNC Economic Factors: Organization of central banking system Economic stability Existence of capital markets Currency restrictions Political and Legal Factors: Quality, efficiency, and effectiveness of legal structure Effect of defense policy Impact of foreign policy Level of political unrest Degree of governmental control of business Educational Factors: Literacy rate Extent and degree of formal education and training systems Extent and degree of technical training Extent and quality of management development programs Sociological Factors: Social attitude toward industry and business Cultural attitude toward authority and persons in subordinate positions Cultural attitude toward productivity and achievement (work ethic) Social attitude toward material gain Cultural and racial diversity Income Taxes and Transfer Pricing 14 -* International Issues in Managerial Accounting CHAPTER 1. Explain the role of the management accountant in the international environment. 2. Identify the varying levels of involvement that firms can undertake in international trade. 3. List the ways management accountants can manage foreign currency risk. 4. Explain why multinational firms choose to decentralize. Objectives After studying this chapter, you should b