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multinational corporations
Weegy: This is a very broad question. Strategic planning involves the management of relevant risks. You might think of access to capital (loans, money, stock and bond offerings, etc). Ex. A small company takes out a 10-year fixed rate loan at 6.00%. [ [ That means it's exposed itself to interest rate risk. What if the interest rate goes down? It's bad. Now, for an international company... what if it invests $100,000,000 in U.S. Treasuries at 6.00%, and the price of the bond goes down from $999 to $950? That means the interest rate rises. Interest rate risk. Strategic planning is greater-than-one-year, but probably what is going to happen after the next three years. A small business will have a better grip on what that is, because the amounts of money are so much smaller. If you don't have a good grip of what's going on now, you probably won't be around later to worry about it. Multinational corporations tend to be bigger, though not necessarily. PROBABLY, but not necessarily. You have to take into account currency risk, interest rate risk... basically look up the business list of risks and add them in. Ex. The small business works in the U.S. in U.S. dollars. ] ] (More)
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Asked 10/30/2012 12:25:43 PM
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