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International Accounting Ch 13. 1. A strategy indicates the general direction in which a firm plans to move to attain its goals. The strategies of any business organization, whether purely domestic or multinational, are determined by matching two key ingredients: core competencies and available opportunities. Internal factors relate to the identification of core competencies of a firm focusing on strengths and weaknesses with regard to the expertise available within the firm in the areas of technology, manufacturing, distribution, and logistics. 2. A strategy indicates the general direction in which a firm plans to move to attain its goals. The strategies of any business organization, whether purely domestic or multinational,…show more content…
Further, the managers of a subsidiary located in a strong uncertainty avoidance society can be expected to create more slack in preparing budgets as a method of dealing with future uncertainty, compared to managers of a subsidiary located in a weak uncertainty avoidance society. In implementing multinational strategy it is important to ensure that the managers and other members of foreign subsidiaries are motivated to behave in accordance with corporate goals. However, people from different cultural backgrounds may respond differently, for example, to financial incentives. 7. The role of accounting in implementing multinational business strategy is to assist the process by which managers influence other members of the organization. Accounting fulfills this role primarily through the budgeting process, in particular, operational budgeting. An operating budget is a financial expression of a firm’s long-term strategy within a shorter time frame, usually one year. It helps plan what the organization should do to effectively implement strategy, coordinate the activities of several parts of the organization, communicate information to organizational members, and evaluate information. Budgeting also offers tools for monitoring progress. In addition, accounting provides the skills necessary to deal with the effects of exchange rate changes and foreign

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