CashManagement(国际财务管理,英文版)

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Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights
Multilateral Netting
Bilateral Netting would reduce the number of foreign exchange transactions by half:
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McGraw-Hill/Irwin
Baidu Nhomakorabea18-17
Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights
Multilateral Netting
Bilateral Netting would reduce the number of foreign exchange transactions by half:
$10
$40
$10 $35 $25
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$10
$60
$10
McGraw-Hill/Irwin
18-13
Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights
Multilateral Netting
Bilateral Netting would reduce the number of foreign exchange transactions by half:
Second Edition
EUN / RESNICK
Chapter Outline
The Management of Multinational Cash Balances Cash Management Systems in Practice Transfer Pricing & Related Issues Blocked Funds
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McGraw-Hill/Irwin
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18-11
Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights
Multilateral Netting
Bilateral Netting would reduce the number of foreign exchange transactions by half:
$10
$20 $25
$25
$10
$10
$10
McGraw-Hill/Irwin
18-18
Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights
Multilateral Netting
Bilateral Netting would reduce the number of foreign exchange transactions by half:
Cash Management Systems in Practice
Multilateral Netting
Is an efficient and cost-effective mechanism for settling interaffiliate foreign exchange transactions.
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Multilateral Netting
Bilateral Netting would reduce the number of foreign exchange transactions by half:
Chapter Eighteen
18 Multinational Cash
Management
INTERNATIONAL
FINANCIAL
Chapter Objective:
MANAGEMENT
This chapter discusses various issues associated with multinational cash management.
Not all countries allow MNCs to net payments
By limiting netting, more unnecessary foreign exchange transactions flow through the local banking system.
The cost of keeping “too much” cash on hand.
i.e. the opportunity costs of holding cash
The cost of not keeping enough cash on hand.
i.e. the trading costs associated with having too little cash
The variability of cash flows.
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Choice of Currency
By maintaining cash balances in a particular currency, the MNC is essentially speculating (or hedging?) in that currency.
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The Size of Cash Balances
The optimal size of the firm’s cash balances depend upon:
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Multilateral Netting
Consider simplifying the bilateral netting with multilateral netting:
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Multilateral Netting
Consider a U.S. MNC with three subsidiaries and the following foreign exchange transactions:
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Where Cash Balances are Located.
Should the firm have centralized cash management in the home country?
Or should the firm let each affiliate handle it locally?
Where are borrowing costs lowest and investment returns highest?
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McGraw-Hill/Irwin
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$60 $20
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Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights
Multilateral Netting
Bilateral Netting would reduce the number of foreign exchange transactions by half:
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The Management of International Cash Balances
The size of cash balances The currency denomination Where these cash balances are located
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McGraw-Hill/Irwin
18-14
Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights
Multilateral Netting
Bilateral Netting would reduce the number of foreign exchange transactions by half:
$10 $35
McGraw-Hill/Irwin
$10
$40 $10
$25 $60
$20 $30
$30 $40
18-10
Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights
Multilateral Netting
Bilateral Netting would reduce the number of foreign exchange transactions by half:
$10
$40
$25 $25
$10
$10
$60
$10
McGraw-Hill/Irwin
18-16
Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights
Multilateral Netting
Bilateral Netting would reduce the number of foreign exchange transactions by half:
$10 $35
McGraw-Hill/Irwin
$10
$40 $10
$25 $60
$20 $30
$30 $40
18-9
Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights
Multilateral Netting
Bilateral Netting would reduce the number of foreign exchange transactions by half:
$10
$40
$25 $25
$10
$10
$60
$10
McGraw-Hill/Irwin
18-15
Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights
Multilateral Netting
Bilateral Netting would reduce the number of foreign exchange transactions by half: