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Multinational cash management and foreign exchange banking

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What are cross-border banks and how would I describe the international banks that offer multinational cash management services that combine banking with foreign exchange management?

Select one bank and describe how the services it offers to take care of the firm's international working capital management requirements?

- Bank of America
- HSBC
- Citibank

How would I demonstrate why this choice is the best alternative among the banks investigated (maybe compare and contrast)?

I would like help in understanding the firm's assumptions and which banks offer services in these areas:

-subsidiaries in South America and Asia that import materials and parts and assemble for export.
-centralize cash management.
-local lending sources for operating cash.
-short-term investment vehicles for excess cash balances.
-foreign exchange and forward market services.
-bills to pay in both local and other currencies.

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Solution Summary

Choosing an international bank that will be able to support the multinational enterprise (MNE) is of the utmost importance. The needs of the firm have to be matched to the essentials the potential bank will offer. Basically, the bank offerings have to be in complete alignment with the firms' needs; otherwise their "partnership" will not be successful.
Some of the factors to consider when selecting the financial institution revolve around matching the firm's corporate financial strategies, with the financial institutions' offerings. This alliance / association will allow the MNE to better assess the opportunities offered by the international market and will also provide a mechanism for the firm to attain and manage its working capital.

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Managing Multinational Operations

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The Acme Company is exploring many strategic options. Whichever global business strategy the Acme Company eventually chooses, the firm inevitably will require the services of a bank to help manage its working capital. Many major multinational banks provide a variety of working capital and multinational cash management services.

Here is a list of Acme's assumptions:

*It will have subsidiaries in South America and Asia that import materials and parts and assemble for export.

*It wants to centralize cash management.

*It needs local lending sources for operating cash.

*It needs short-term investment vehicles for excess cash balances.

*It needs foreign exchange and forward market services.

*It will have bills to pay in both local and other currencies.

Using the websites of a variety of these cross-border banks (starting with the banks listed below), search out the international banks that offer multinational cash management services that combine banking with foreign exchange management. Select one bank and describe how the services it offers will take care of Acme's international working capital management requirements. Be sure to demonstrate why you believe your choice is the best alternative among the banks you investigated (i.e., compare and contrast).

Bank of America
HSBC
Wachovia

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