BUSINESS CHALLENGES FACING

GLOBAL FIRMS
ACQUIRING
SOLID
FINANCING
Many Global Companies have
presented new opportunities and
challenging for the CFOs.

As corporations go
global they also have
to wrestle with the
capital structure and
profit
Repatriation policies of their
companies subsidiaries.
Companies must have a healthy and
solid financial condition
The financial strength is linked with
an appropriate planning and
financing strategic
Divisional
differences
Complications
introduced by
currency, tax, and
country risks.
CHARACTERISTICS
FINANCING IN THE INTERNAL
CAPITAL MARKET
Institutional differences across a
companys operations allow plenty
of scope for creating value through
wise financing decisions.

MANAGING RISK
GLOBALLY
Through their worldwide
operations. Lets say a
European subsidiary
purchases local
components and sells a
finished product to the
Japanese market.
CAPITAL BUDGETING
Capital budgeting is a process used by
companies for evaluating and
ranking potential expenditures or
investments that are significant in
amount.
DIFFICULTIES TO FACE
MANAGERS WITH THIS
CHALLENGE
Financial globalization has
brought considerable
benefits to national
economies and to investors
and savers
changed the structure of
markets, creating new risks
and challenges for market
participants.

THE CFOS FACE VARIOUS
ISSUES
CONSEQUENCES
As a result of
Globalization firms
have increased their
needs to be financed
To be
Efficient,
Profitable,
Productive.
CONSEQUENCES
It reduces the risk of a Credit
Crunch
Lack of
liquidity
CONSEQUENCES
FINANCING
External
Sources
Internal Markets

Risk of Exchange
rate
Interest Rates may be
more expensive but
less risky

Potencial Solutions
Get a loan in a bank
Initiate a process of Business Activities Outsourcing
Achieving an advance payment on account from
customers
Implement Factoring
Increase Capital through invest in households
Achieving reduction in recovery portfolio
Paying in long term investment in assets