CashManagement(国际财务管理,英文版)

INTERNATIONALFINANCIALMANAGEMENTEUN/RESNICKSecondEdition18ChapterEighteenMultinationalCashManagementChapterObjective:Thischapterdiscussesvariousissuesassociatedwithmultinationalcashmanagement.McGraw-Hill/IrwinCopyright©2001byTheMcGraw-HillCompanies,Inc.Allrightsreserved.18-1ChapterOutlineTheManagementofMultinationalCashBalancesCashManagementSystemsinPracticeTransferPricing&RelatedIssuesBlockedFundsMcGraw-Hill/IrwinCopyright©2001byTheMcGraw-HillCompanies,Inc.Allrightsreserved.18-2TheManagementofInternationalCashBalancesThesizeofcashbalancesThecurrencydenominationWherethesecashbalancesarelocatedMcGraw-Hill/IrwinCopyright©2001byTheMcGraw-HillCompanies,Inc.Allrightsreserved.18-3TheSizeofCashBalancesTheoptimalsizeofthefirm’scashbalancesdependupon:Thecostofkeeping“toomuch”cashonhand.i.e.theopportunitycostsofholdingcashThecostofnotkeepingenoughcashonhand.i.e.thetradingcostsassociatedwithhavingtoolittlecashThevariabilityofcashflows.McGraw-Hill/IrwinCopyright©2001byTheMcGraw-HillCompanies,Inc.Allrightsreserved.18-4ChoiceofCurrencyBymaintainingcashbalancesinaparticularcurrency,theMNCisessentiallyspeculating(orhedging?)inthatcurrency.McGraw-Hill/IrwinCopyright©2001byTheMcGraw-HillCompanies,Inc.Allrightsreserved.18-5WhereCashBalancesareLocated.Shouldthefirmhavecentralizedcashmanagementinthehomecountry?Orshouldthefirmleteachaffiliatehandleitlocally?Whereareborrowingcostslowestandinvestmentreturnshighest?McGraw-Hill/IrwinCopyright©2001byTheMcGraw-HillCompanies,Inc.Allrightsreserved.18-6CashManagementSystemsinPracticeMultilateralNettingIsanefficientandcost-effectivemechanismforsettlinginteraffiliateforeignexchangetransactions.NotallcountriesallowMNCstonetpaymentsBylimitingnetting,moreunnecessaryforeignexchangetransactionsflowthroughthelocalbankingsystem.McGraw-Hill/IrwinCopyright©2001byTheMcGraw-HillCompanies,Inc.Allrightsreserved.18-7MultilateralNettingConsideraU.S.MNCwiththreesubsidiariesandthefollowingforeignexchangetransactions:$10$35$40$30$20$25$60$40$10$30$20$30McGraw-Hill/IrwinCopyright©2001byTheMcGraw-HillCompanies,Inc.Allrightsreserved.18-8MultilateralNettingBilateralNettingwouldreducethenumberofforeignexchangetransactionsbyhalf:$10$35$40$30$20$25$60$40$10$30$20$30McGraw-Hill/IrwinCopyright©2001byTheMcGraw-HillCompanies,Inc.Allrightsreserved.18-9MultilateralNettingBilateralNettingwouldreducethenumberofforeignexchangetransactionsbyhalf:$10$35$40$30$25$60$40$10$10$20$30McGraw-Hill/IrwinCopyright©2001byTheMcGraw-HillCompanies,Inc.Allrightsreserved.18-10MultilateralNettingBilateralNettingwouldreducethenumberofforeignexchangetransactionsbyhalf:$10$35$40$30$25$60$40$10$10$20$30McGraw-Hill/IrwinCopyright©2001byTheMcGraw-HillCompanies,Inc.Allrightsreserved.18-11MultilateralNettingBilateralNettingwouldreducethenumberofforeignexchangetransactionsbyhalf:$10$35$10$25$60$40$10$10$20$30McGraw-Hill/IrwinCopyright©2001byTheMcGraw-HillCompanies,Inc.Allrightsreserved.18-12MultilateralNettingBilateralNettingwouldreducethenumberofforeignexchangetransactionsbyhalf:$10$35$10$25$60$40$10$10$20$30McGraw-Hill/IrwinCopyright©2001byTheMcGraw-HillCompanies,Inc.Allrightsreserved.18-13MultilateralNettingBilateralNettingwouldreducethenumberofforeignexchangetransactionsbyhalf:$10$35$10$25$60$40$10$10$10McGraw-Hill/IrwinCopyright©2001byTheMcGraw-HillCompanies,Inc.Allrightsreserved.18-14MultilateralNettingBilateralNettingwouldreducethenumberofforeignexchangetransactionsbyhalf:$10$35$10$25$60$40$10$10$10McGraw-Hill/IrwinCopyright©2001byTheMcGraw-HillCompanies,Inc.Allrightsreserved.18-15MultilateralNettingBilateralNettingwouldreducethenumberofforeignexchangetransactionsbyhalf:$25$10$25$60$40$10$10$10McGraw-Hill/IrwinCopyright©2001byTheMcGraw-HillCompanies,Inc.Allrightsreserved.18-16MultilateralNettingBilateralNettingwouldreducethenumberofforeignexchangetransactionsbyhalf:$25$10$25$60$40$10$10$10McGraw-Hill/IrwinCopyright©2001byTheMcGraw-HillCompanies,Inc.Allrightsreserved.18-17MultilateralNettingBilateralNettingwouldreducethenumberofforeignexchangetransactionsbyhalf:$25$10$25$20$10$10$10McGraw-Hill/IrwinCopyright©2001byTheMcGraw-HillCompanies,Inc.Allrightsreserved.18-18MultilateralNettingBilateralNettingwouldreducethenumberofforeignexchangetransactionsbyhalf:$25$10$25$20$10$10$10McGraw-Hill/IrwinCopyright©2001byTheMcGraw-HillCompanies,Inc.Allrightsreserved.18-19MultilateralNettingBilateralNettingwouldreducethenumberofforeignexchangetransactionsbyhalf:$25$10$15$20$10$10McGraw-Hill/IrwinCopyright©2001byTheMcGraw-HillCompanies,Inc.Allrightsreserved.18-20MultilateralNettingConsidersimplifyingthebilateralnettingwithmultilateralnetting:$25$10$15$20$10$10McGraw-Hill/IrwinCopyright©2001byTheMcGraw-HillCompanies,Inc.Allrightsreserved.18-21MultilateralNettingConsidersimplifyingthebilateralnettingwithmultilateralnetting:$15$10$15$20$10$10$10McGraw-Hill/IrwinCopyright©2001byTheMcGraw-HillCompanies,Inc.Allrightsreserved.18-22MultilateralNettingConsidersimplifyingthebilateralnettingwithmultilateralnetting:$15$10$15$20$10$10McGraw-Hill/IrwinC