Temporary 30 multinational working capital mgt cash

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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 lockbox especially important. especially Although MNCs and domestic corporations have the same Although objectives and use similar procedures, MNCs face a far more complex task. Foreign governments often place restrictions on transfers of Foreign 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. 31 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 You send payment for all invoices issued by your organization directly to the lockbox. In turn, your bank will open all correspondence, deposit the checks In 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. The Lockbox services get money into your bank account faster than you’d be able to do it yourself . be One of the most important advantages is security. Generally, One 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 just of comfort. of Imaging and automation through Optical Character Recognition Imaging 32 (OCR) (OCR) Multinational Working Capital Mgt A similar transfer from its Buenos Aires office is far more similar 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. converted 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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