We study whether multinational corporations transmit the effects of a localized banking crisis to countries all over the world. We identify an exogenous shock to the credit supply of multinational parent corporations located in Germany. The shock to parents caused a reduction in the sales of their international affiliates for three years. We use unique data on linkages between parents and affiliates to study the transmission mechanism from parents’ credit supply to affiliates’ sales. Both financial constraints and intrafirm trade played a role: Parents withdrew equity from their affiliates, required more long-term lending from the affiliates, and traded less with their affiliates. The results improve our understanding of the internal operations of multinational firms and suggest that multinationals contribute to global business cycle synchronization.