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Financial statement analysis of multinational corporations (MNCs) is becoming increasingly complex, due to the further globalization of MNCs and the development of a world economy. MNCs are expanding their markets overseas to become globally competitive. No longer is the international dimension of their businesses only a mere portion of their total activity.

The economic organization of Western Europe and the creation of a new market in Eastern Europe are two forces augmenting the world economy. Couple with existing competition from the Far East, U.S. MNCs are entering world markets at an accelerated pace. This is both an opportunity and a necessity for U.S. MNCs.

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