ABSTRACT
THE BALANCE of payments exerts significant influence on the environment of the multinational corporation. It affects key financial and economic variables, such as the exchange rate, currency controls, country risk, availability of capital and funding sources, interest rates, and investment feasibility. These variables, in turn, affect MNCs worldwide. In addition to discussing the conceptual framework of the balance of payments, this chapter examines its accounting, financing, and interaction with the national and international sectors.
