What are the effects of the present global financial crisis on Multinational companies?

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justaguide eNotes educator| Certified Educator

I would say that multinational companies are in a way better off in the present global financial crisis as all countries have not been affected by it equally.

Though the global financial crisis is affecting all countries in some way or another, the drop in consumption in many countries is not as high as that in the US. This is one of the advantages that multinational companies have over those that focus only on one country. The geographical diversification allows companies to shift focus to countries that are affected to a lesser extent and try to increase sales there to compensate for the drop in revenue in other countries.

For example, with the financial system in the US having crashed, banks and other financial institutions have increased their focus on gaining more clients in other countries and are investing more money in assets outside the US.