Essays on The Rigorous Business of Budgeting for International Operations by Milani and Rivera Article

The paper "The Rigorous Business of Budgeting for International Operations by Milani and Rivera" is a brilliant example of an article on finance and accounting. Foreign matters have an intense effect on the budgeting activities of international firms. International organizations argue with a variety of external aspects, internal reflections, and other dynamics that affect budget policies, structure, and control. External aspects influencing budgeting operations of multinational firms include exchange rates of foreign currencies, rates of interest, and inflation (Milani and Rivera 38). Exchange rates of foreign currencies are the most influential ones as they influence an international firm through translation, dealing, and financial experiences. The Fisher Effect, International Fisher Effect, and rate of interest uniformity connections contribute to the rate of interest’s effect on global companies. Lastly, inflation affects multinationals by centering on differences between nations and securing purchasing power uniformity and applying the Fisher Effect (Milani and Rivera 42).

The main point of the article is that dealing with multinational risk is the core of budgeting for foreign subsidiaries. However, moving pricing and stock policy also affects global budgeting intensely (Milani and Rivera 38).
The first point of interest is that global budgeting remains an uncertain practice even with concrete findings and strong geopolitical regulations. Second, multinational organizations should be continually alert and conscious of this uncertainty because it is more prevalent and undesirable than widely presumed. Lastly, multinational firms take on the demanding business of budgeting for translational activities because it is expected of their budgetary operations (Milani and Rivera 49).
This article is important to a finance and accounting class because identifies with accounting standards necessary for learners in this class. The article presents a thorough and confined case of multinational dealings with budgeting across developed and developing economies across the world.
Points I would like to discuss in class are:
Cost budgets and their roles in transnational budgeting
Capital and liquid budgeting
Transfer valuation
The overall image of budget control or regulation

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