ch19 - Multinational Financial Management Alan Shapiro 9th...

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Multinational Financial Management Alan Shapiro 9 th Edition Power Points by Joseph F. Greco, Ph.D. California State University, Fullerton
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CHAPTER 19 Current Asset Management and Short-Term Financing
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International Cash Management PART 1
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INTERNATIONAL CASH MANAGEMENT I. INTERNATIONAL CASH MANAGEMENT A. Seven Key Areas Involve Issues about 1. Organization 2. Collection/Fund Disbursement 3. Interaffiliate Payments 4. Investment of Excess Funds 5. Optimal Global Cash Balances 6. Cash Planning/Budgeting 7. Bank Relations
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INTERNATIONAL CASH MANAGEMENT B. Goals of an International Cash Manager: similar to domestic manager 1. Quick and efficient cash control 2. Optimal conservation and usage response
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INTERNATIONAL CASH MANAGEMENT Issue (#1): Centralize Organization Issue (#1): Centralize Organization 1. Advantages: a. Efficient liquidity levels b. Enhanced profitability c. Quicker headquarter
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INTERNATIONAL CASH MANAGEMENT 1. Advantages (con’t) d. Decision making enhanced e. Better volume currency quotes f. Greater cash management expertise g. Less political risk
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INTERNATIONAL CASH MANAGEMENT Issue (#2): Collection/Disbursement of Issue (#2): Collection/Disbursement of Funds Funds 1. Key Element: Accelerate collections 2. Acceleration Methods: a. Electronic fund transfers b. Mobilization centers
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INTERNATIONAL CASH MANAGEMENT 3. Methods to Expedite Cash Payments a. Wire cash transfers b. Establish accounts in client’s bank c. Negotiate with banks - obtain value dating
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INTERNATIONAL CASH MANAGEMENT Issue (#3): Interaffiliate Payments Issue (#3): Interaffiliate Payments Use Payments Netting 1. Definition: -offset payments of affiliate receivables/payables -net amounts only are transferred.
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ch19 - Multinational Financial Management Alan Shapiro 9th...

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