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    International Working Capital Management

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    Sumant Kumar
    International working capital management and Explaination of institutional structure of international financial markets

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    International Working Capital Management

    Uploaded by

    Sumant Kumar
    11K views16 pages
    International working capital management and Explaination of institutional structure of international financial markets

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    International working capital management

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    International working capital management and Explaination of institutional structure of international financial markets

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    11K views16 pages

    International Working Capital Management

    Uploaded by

    Sumant Kumar
    International working capital management and Explaination of institutional structure of international financial markets

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    You are on page 1of 16

    International Financial

    Management

    By:
    Sumant Kumar
    Rai Business School
    Question 1.

    Discuss what do you


    understand by international
    working capital management?
    Answer 1.

    Working capital management in a


    multinational enterprise requires
    managing current assets and
    current liabilities when faced with
    political, foreign exchange, tax and
    liquidity constraints.
    The overall goal is to reduce
    funds tied up in working capital
    while simultaneously providing
    sufficient funding for the
    conduct of global business.
    Working capital management
    should enhance return on
    assets and should also improve
    efficiency ratios and other
    performance measures.
    Working capital includes:

    1.Cash management.
    2.Accounts receivables
    management.
    3.Inventory management.
    Question 2.

    Explain the institutional


    structure of international
    financial markets ?
    Answer 2:

    In economics, a financial market is


    a mechanism that allows people to
    buy and sell (trade) financial
    securities (such as stocks and
    bonds), commodities (such as
    precious metals or agricultural
    goods) etc.
    Financial markets have evolved
    significantly over several
    hundred years and are
    undergoing constant innovation
    for effective liquidity.
    On – Shore Market
    • Traditional national markets subjected to
    the regulations and jurisdiction of the
    country’s monetary and securities markets
    authorities.
    Off - Shore Market
    • Located outside the geographical
    boundaries of the country. These markets
    are not subjected to many of the
    monitoring and regulatory provisions.
    Euro market is type of Off shore market.

    In regard to structure, the Euro Money


    market has been less concentrated over the
    past years. But differences across the
    various money market segments continue to
    exist.
    The money market segments
    that are highly condensed are
    the forward rate agreement,
    other interest rate agreement
    and the cross currency swap
    segments.
    The Euro money market
    products are short term
    deposits, repos, EONIA swaps
    and foreign exchange swaps.
    There is an increase in the
    liquidity in these money market.
    Transactions in the Euro Money
    Market occur mainly through the
    electronic mode.
    THANK YOU

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