The purpose of this study is to investigate the
capital budgeting and financing decisions of UK and
US multinational enterprises. Following a survey
approach, this study examines the impact that the
general equilibrium and the disequilibrium schools
of reasoning have upon international investment
and financing decisions of the multinational.
Further, the degree of centralisation in financial
policy is investigated in the light of the two schools
of thought which partition corporate finance
theory. A conjoint methodology is utilised in order
to evaluate the gravity of various environmental
issues upon the foreign direct investment decision
as well as the utilities for discrete levels of those
determinants. The research inquiry is enriched
with in-depth interviews with fourteen senior
finance managers of British based multinational
companies