Research On Financial Strategy Of Multinational Corporation In The Context Of The Financial Crisis

The US subprime crisis triggering the current financial crisis , and resulting in the global consumption, the banks and the government of financial assets take on shrink. The U S A and the whole word had different and vary influenced from The US subprime crisis. And it spread to the entity gradually. The real economy that facing market and economical conditions deteriorated, the exchange rate and tax issues adjusted becoming backbone of the economy. Therefore, what the effect have and Financial Strategy take of the real economy are worthy to analysis and research.With the global economic integration, almost the government encourages the enterprises take the measures of open and absorb to the word. At the same time, the multinational corporations have full development and become the mainly force. The multinational corporations have many influence, for example, promoting the development, innovation and abundant of the whole word economic; making international trend; increasing the capital of the host country; enhancing the competitiveness and so on.Therefore, the multinational companies have become more and more important role in the financial strategy. Financial strategy will direct impact on the business performance and development. A reasonable and good financial strategy will allow companies to deal with complex, and changing macro-financial environment.The third chapter is to introduce the multinational corporations effected by the financial crisis. First, analyse the strong infectious, high-frequency nature, destructive and so on. Then, try to introduce the special and the formation of this financial crisis.Secondly, analyse this effect: the multinational corporations faced the problems of the tensional operating cash flow in 2008. A half of the multinational companies of China flow quickly in 2008, and almost of them show negative, which indicates that the operating cash flow constraints. Balance sheet accounts appeared assets shrink such as surplus inventory reality difficult, accounts receivable hard collected. And the cost whatever direct materials , irect manual or operating expenses are increasing. At the same time, the power of purchasing show down. As result of that we can learn that the profits of the multinational companies decreasing quickly.Third, the financial crisis have deeply impact on financing decision and investment decision. The multinational companies facing reductive external financing sources, and decreasing investment.Fourth, the multinational companies have great potentials increased financial risk. Mainly, increased the amount of accounts receivable, longer period of payment, credit risk increased.Finally, the financial crisis, several international financial markets, exchange rate fluctuations of major currencies, major, and in a short time can be up to 20% - 30%.The fourth chapter describes the financial strategies of transnational corporations in the financial crisis measures and their adjustment. First of all, capital budgeting. Second, optimize capital structure. Third, central management and speedup inward cash-flow. Last, the Multinational bank needs to reorganize to adjustment.