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As multinational firms struggle to compete in a global economy, their operating and accounting decisions are being made in an environment that's characterized by fluctuating exchange rates, innovative and flexible organizational structures, and a dynamic and diverse control strategy. As a result, managerial accounting techniques have to adapt to this unique environment by devising new ways to solve decision problems. This book explores the major issues that accountants in multinational corporations, and their outside consulting firms, must deal with if they are to understand how the corporation is performing financially, and if they are to effectively advise top management.
To describe the specific environment of multinational management accounting and the particular accounting techniques required for efficient operation, Ahmed Belkaoui divides his study into four topical sections. The first offers an introductory overview of the new international business environment and the extent of financial engineering. Section two focuses on managing exchange rate risks, and covers such issues as the management of foreign exchange risk, the management of economic exposure, and the management of transaction exposure. Organization and controlling are detailed in section three, with separate chapters exploring the organizational structures and control of multinational operations and performance evaluation techniques. The final section examines management accounting issues, including international financial analysis, international capital budgeting, pricing strategies, the lease-or-buy decision, and advanced capital budgeting. This work will be an essential resource for accounting professionals working in multinational organizations and the international business environment, as well as for students in accounting and international business courses. Public, academic, and business libraries will all find it to be a valuable addition to their collections.
List of contents
Preface
Introduction: The International EnvironmentThe International Business Environment
Managing Exchange Rate RisksExchange Rate Determination and Efficiency
Economic Exposure: Nature, Measurement, and Management
Managing Transaction Exposure
Organization and ControllingOrganizational Structures of Foreign Operations
Performance Evaluation of Multinational Operations
Management Accounting IssuesInternational Financial Analysis
Capital Budgeting for the Multinational Corporation
Pricing Strategies for International Operations
Analysis of the Lease-or-Buy Decision
Advanced Capital Budgeting
Index
About the author
AHMED RIAHI-BELKAOUI is Professor of Accounting at the University of Illinois at Chicago. His 13 previous books with Quorum include
Judgement in International Accounting (1990),
The Coming Crisis in Accounting (1989), and
Behavioral Accounting (1989).
