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Manage Working Capital

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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.
Some U.S. banks also have international operations. If your company acquired a company in another country, would you choose to bank with a local bank in that country, or would you select a U.S. bank with international operations? Why would you make this selection? A few US banks with international operations are below:
• Bank of America
• HSBC
• Citibank

Objective:
Different types of foreign exchange exposure faced by the MNC.
The structure of international financial markets and institutions, the range of instruments traded therein.
How do financial management decisions of multinational firms differ from those operations.

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The response addressed the query posted in 731 words with references.

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The response addressed the query posted in 731 words with references.

//Banking and finance play very significant role in promoting business and commerce in any developed or developing country. Banking, here, is not only confined to depositing or lending money function, but also includes many other functions. In this context, the following discussion will shed light on roles played by banks in promoting MNCs. //

Banks roles in promoting MNCs:

With industrialization, there has been an immense growth of existing firms and new firms. Now, company's growth directly or indirectly affects the economy of the nation. The economy with more rapid industrial growth is considered to be more developed. This may not be possible without adequate financial resources or financial aids. Due to this reason, more focus is now being given in making financial institutions more dynamic in terms of functions. It has been realized that only depositing and providing loan to MNCs are not sufficient; this has led to expansion of functional areas of banks. Earlier, banks were only providing loans and depository facilities, but now banks provide various other facilities to promote MNCs. The following facilities come under bank services:

Banks provide foreign exchange to promote export and import.

They provide ...

Solution provided by:
Ashish Sharma, MBA (IP)
Education
  • MBA (IP), International Center for Internationa Business
  • BBA, University of Rajasthan
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