Introduction-

Globalization has made a tremendous impact

throughout the world in past decade
The world has seen a tremendous increase in the
global transactions and foreign trade in recent years
MNC and TNC hold strong hold in different channels
of globalization .
Reasons behind growth of IFM
Co. are getting engaged in trading with each other.
Co. wants to increase profit/sales.
Co. wants to protect them from competition.
MNC and TNC-
MNC- Multi National Corporation with extensive ties
in international operations in more then o ne foreign
country. An MNC has its facilities and other assets in
at least one country other than home country.
Ex- NIKE, GE , WAL –MART

TNC- A Transnational Corporation is a MNC that

operates worldwide without being identified with
national home base and have become strong economic
identity . They control 70% of world’s business.
Ex- Unilever, Nestle
IFM and Domestic Financial
Markets-
Foreign Exchange Risk
Political Risk
Expanded Opportunity Sets
Market Imperfections