Unformatted text preview: hence the transfer, may be
Even if no dollar shortage exists in Argentina, the government
may still restrict funds outflows if those funds represent profits
or depreciation rather than payments for purchased materials or
equipment, because many countries, especially those that are
less developed, want profits reinvested in the country in order to
stimulate economic growth.
33 Multinational Working Capital Mgt Once it has been determined what funds can be transferred, the
next task is to get those funds to locations where they will earn
the highest returns.
Whereas domestic corporations tend to think in terms of
domestic securities, multinationals are more likely to be aware
of investment opportunities all around the world.
Most multinational corporations use one or more global
concentration banks, located in money centers such as London,
New York, Tokyo, Zurich, or Singapore, and their staffs in those
cities, working with international bankers, know of and are able
to take advantage of the best rates available anywhere in the
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