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Chosing international bank to support MNE - Acme

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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
Citibank

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https://brainmass.com/business/working-capital-management/402350

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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.

The author has researched three major financial institutions and will contrast and compare which entity will be better suited for the MNE, based on a set of assumptions. The assumptions are: the financial institution has to have subsidiaries in South America and Asia, must have local lending sources, must be able to handle centralized cash management, must be able to handle foreign exchange services ...

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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