Question

why is credit policy particularly important for multinational firms?

Answer 1

Multinational firms operate business in multiple countries.
Multinational firms grant trade credit to the customers because they believe investment in receivables to be profitable.
They grant trade credit to increase sales volume or to retain sales that would otherwise go to their competitors.

Credit policy is important for multinational companies because:
Much trade is with developing or under developed nations, in such case granting credit becomes a necessary condition to do business.
If economic health of a nation depends on exports, then the government of that nation often help their companies compete by granting credit to the foreign customers.