Unformatted text preview: these goals as domestic firms, but because of
longer distances and more serious mail delays, such devices
as lockbox systems and electronic funds transfers are
Although MNCs and domestic corporations have the same
objectives and use similar procedures, MNCs face a far
more complex task.
Foreign governments often place restrictions on transfers of
funds out of the country, so although IBM can transfer
money from its Salt Lake City office to its New York
concentration bank just by pressing a few buttons.
concentration Multinational Working Capital Mgt A lockbox is simply a post office box that your bank establishes for
your business and that the bank will control.
You are issued a remit to address that will allow your customers to
send payment for all invoices issued by your organization directly to
In turn, your bank will open all correspondence, deposit the checks
into your accounts, and provide you with electronic access that allows
you to see daily activity.
The main reason to consider lockbox services is speed and efficiency.
Lockbox services get money into your bank account faster than you’d
be able to do it yourself .
One of the most important advantages is security. Generally,
lockboxes are protected above and beyond the usual security
measures associated with having a post office box. When a payment
reaches your lockbox the chances of it falling into the wrong hands is
just about nil. This can give both you and your customer base a sense
Imaging and automation through Optical Character Recognition
(OCR) Multinational Working Capital Mgt A similar transfer from its Buenos Aires office is far more
complex. Buenos Aires funds are denominated in australs
(Argentina’s equivalent of the dollar), so the australs must be
converted to dollars before the transfer.
If there is a shortage of dollars in Argentina, or if the
Argentinean government wants to conserve dollars to purchase
strategic materials, then conversion,...
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