Internal Finance and Globalization - Microsoft Corporation.

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�PAGE � International Finance - � PAGE �1� -

Microsoft Corporation

International Finance and Globalization

Charity Matthew, Dan Moore, Gerry Ewing,

University of Phoenix

FIN/419

Thien Ngo

March 8, 2010

Introduction

Corporate business has focused on global markets for at least the last 10 years. Whether a European, South American, or Asian company has invested in U.S. technology, energy, and Industrial firms, or U.S. firms have begun to build globally though joint ventures and acquisitions, the catch phrase throughout is Globalization. Globalization creates issues related to international banking and how decisions are made with regard to the various regulatory bodies in the U.S. and in foreign markets.

This paper will concentrate on three areas of globalization; global investment banking, regulatory body financial decisions, and recent trends in international finance. The company chosen for this organizational review of international finance is Microsoft Company, headquartered in Redmond, Wa. Microsoft is a public company that trades its stocks on the NASQAD stock exchange.

Recent Trends in International Finance

Some European and South American corporations have invested heavily in U.S. domestic companies since the 1980s. They have, in fact, successfully acquired U.S. companies. Recently, because of the hard economic times, few of these companies have been able to survive (Gitman, 2006). Many U.S. based companies have been able to take advantage of the economic down-turn and have reversed the trends by acquiring foreign-based assets. Another recent trend in international finance is joint ventures. Many U.S. companies have joined with foreign companies, including those in Japan and other industrial countries (Gitman, 2007). Many U.S. firms believe that joint ventures, especially with Japan, is an open invitation into the various Japanese markets (Gitman, 2006).

Microsoft Company has acquiring assets and in joint ventures with various foreign companies for years. Acquisitions has been a successful way for...