Annual Report of Multinational Corporations - Coursework Example

Multinational corporations are companies that have two or more companies apart from their homeland company.  For instance, such companies are in line with many other companies in different countries or continents that have a centralized head office in their homeland where they carry out their global management of all their branches (Organization, 2004). In this regard, some of the companies that form the above corporation are; Coca-Cola company, Honda, Toshiba, Nike, BMW, and Wal-Mart just to mention but a few. Notably, research made by Willy keen states that, this company’s allegations stand out that they improve on the economy of countries that are not well-off mainly the third world countries, with the reason of improving on their economy and marketing themselves (Organization, 2005).

However, these companies are at a big risk of translation exposures because of different political and economical challenges in different nations. Translation exposure is the difference between the exposed rates and liabilities; this may give the rise to currency or fall. Furthermore, this has in turn created a huge challenge in the centralization management of the companies involved in this system. Nevertheless, economically these companies are at risk of losing some cash because of the huge geographical area of management. Additionally, transactions from these companies experience delays in some areas because of centralized management, hence more risk of losing customers and other great deals.

Currencies borrowed by multinational cooperation in US dollar over the past five years.