Essay Example on Six Factors That Differentiate Financial Management in Multi-Country Companies

Six factors differentiate financial management in companies, in which operations are based within a country from the ones which operate within various countries. The first factor is the currency denominations difference. Every nation uses a different currency. The state gets expected to research the rates of exchange of money when operating in various nations. The second factor is the political risk experienced in other countries. The operations of the firm may be exposed to specific restrictions and obstacles when transferring commodities and products across the border (Tansel, 2017). The third aspect is the government's role. Every country has rules and regulations which differ from one another. The understanding of what those rules and regulations are useful to any firm is also different. The fourth factor is the legal and economic ramifications that are considered for firms operating in various countries. As every nation differs in currency, it makes sense for every country to vary in the legal and economic system. A particular country may find some commercial systems of another country to be illegal, yet there are lawful in their order. The last two factors are the language barrier and the cultural barrier. Just as in the same case where there exist different exchange rates in various countries, there also exists different type of languages in the world (Rothaermel, 2017). To ensure the business of a company runs smoothly, especially for countries that operate in various countries, there is a need to understand the language and culture of the country precisely. Otherwise, the firm will not be able to run well when dealing with its transactions and business deals in the country.

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Some of the barriers which are common to enter a new country are the advantages of cost. A firm requires to be careful in every aspect and carry out a cost analysis to measure its worthiness of operating in a particular company. Another common barrier is the government's laws and regulations of a specific organization. Depending on the kind of organization, one can clarify that the company will be able to operate in a particular company considering their government laws and regulations. Another significant barrier is the country's economy (Epstein, 2018). It is not an excellent concept for any company to start its operations in a company with a weak economy. An organization that takes its services to various countries can get faced with multiple barriers and obstacles, and the country is the only depending factor in this case.

The financial management of countries across the world differs a lot. The difference is brought due to various reasons; different currency is one of the major concepts which causes the difference in financial management among countries. The exchange rate also enhances the variation of the management of finances within different countries. It is improbable to find two countries with a similar financial management system, rules, and regulations.

Improving Ethics

Ethics is among the vast growing priorities in business for the managerial and leadership sector and personnel (Greenwood, 2016). The leaders are being faced with a hard time to embed an ethical culture into the business. However, some ways can get taken to improve ethics in business and finance. The following are ways which can get used to strengthen ethics:

The ethics effectiveness of a particular program should be measured to make sure it is well-practiced within the organization in question.

Provision of routes that support the staff, the firm should implement clear and understandable ways of reporting any unethical business in the firm (Dolezel & Morrison, 2017).

Training, communicating, and engagement of the staff and other stakeholders helps in the improvement of ethics codes in business.

To improve ethics in corporate governance, the firm should increase the diversity of the stakeholders in the company, appoint board members who are competent enough, evaluate the board performances, ensure there is timely deliverance of information, and prioritize risk management in the company (Watts et al., 2017).

References

Dolezel, D. M., & Morrison, E. E. (2017). Improving the curriculum with ethics: Gaps between perceived ethical challenges of practitioners and educators. Journal of Curriculum and Teaching. https://www.semanticscholar.org/paper/Improving-the-Curriculum-with-Ethics%3A-Gaps-between-Dolezel-Morrison/9a292f48df047e3f7259f1f62a7e1670c8b1bb4b

Epstein, M. J. (2018). Making sustainability work: Best practices in managing and measuring corporate social, environmental, and economic impacts. Routledge. Pdf. https://www.bkconnection.com/static/Making_Sustainability_Work_2nd_EXCERPT.pdf

Greenwood, M. (2016). Approving or improving research ethics in management journals. Journal of Business Ethics. https://research.monash.edu/en/publications/approving-or-improving-research-ethics-in-management-journals

Rothaermel, F. T. (2017). Strategic management. New York, NY: McGraw-Hill Education. https://www.mheducation.com/highered/product/strategic-management-rothaermel/M9781259420474.html

Tansel, B. (2017). From electronic consumer products to e-wastes: Global outlook, waste quantities, recycling challenges. Environment International. https://www.semanticscholar.org/paper/From-electronic-consumer-products-to-e-wastes%3A-Tansel/693fe27eec47d019c0071eeb5e5a9c1252e3c381

Watts, L. L., Medeiros, K. E., Mulhearn, T. J., Steele, L. M., Connelly, S., & Mumford, M. D. (2017). Are ethics training programs improving? A meta-analytic review of past and present ethics instruction in the sciences. Ethics & Behavior. https://www.ncbi.nlm.nih.gov/pmc/articles/PMC6368181/