跨国现金管理ppt课件.ppt

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1、INTERNATIONALFINANCIALMANAGEMENTEUN/RESNICKFourthEdition0INTERNATIONALFINANCIALMANAGEMENTEUN/RESNICKFourthEditionChapterObjective:Thischapterdiscussesvariousissuesassociatedwithmultinationalcashmanagement.19ChapterNineteenMultinationalCashManagement1ChapterOutlineTheManagementofMu

2、ltinationalCashBalancesCashManagementSystemsinPracticeTransferPricing&RelatedIssuesBlockedFunds2TheManagementofInternationalCashBalancesThesizeofcashbalancesThecurrencydenominationWherethesecashbalancesarelocated3TheSizeofCashBalancesTheoptimalsizeofthefirm’scashbalancesdependupo

3、n:Thecostofkeeping“toomuch”cashonhand.i.e.theopportunitycostsofholdingcashThecostofnotkeepingenoughcashonhand.i.e.thetradingcostsassociatedwithhavingtoolittlecashThevariabilityofcashflows.4TheSizeofCashBalancesOpportunityCostsTradingcostsTotalcostofholdingcashC*Costsindollarsofhol

4、dingcashSizeofcashbalanceTheinvestmentincomeforegonewhenholdingcash.Tradingcostsincreasewhenthefirmmustsellsecuritiestomeetcashneeds.5ChoiceofCurrencyBymaintainingcashbalancesinaparticularcurrency,theMNCisessentiallyspeculating(orhedging?)inthatcurrency.6WhereCashBalancesareLocate

5、d.Shouldthefirmhavecentralizedcashmanagementinthehomecountry?Orshouldthefirmleteachaffiliatehandleitlocally?Whereareborrowingcostslowestandinvestmentreturnshighest?7CashManagementSystemsinPracticeMultilateralNettingIsanefficientandcost-effectivemechanismforsettlinginteraffiliatefo

6、reignexchangetransactions.NotallcountriesallowMNCstonetpaymentsBylimitingnetting,moreunnecessaryforeignexchangetransactionsflowthroughthelocalbankingsystem.8ExposureNetting:anExampleConsideraU.S.MNCwiththreesubsidiariesandthefollowingforeignexchangetransactions($000s):$10$35$40$30

7、$20$25$60$40$10$30$20$309ExposureNetting:anExampleBilateralNettingwouldreducethenumberofforeignexchangetransactionsbyhalf:$10$35$40$30$20$40$30$20$30$20$30$10$40$30$10$30$20$60$10$35$25$60$40$20$25$10$25$10$15$1010MultilateralNetting:anExampleConsidersimplifyingthebilateralnetting

8、withmultilateralnetting:$25$10$20