Centralized Depositories
Every business needs to hold some cash balances for serving accounts that must be paid and for insuring against unanticipated negative variation from its projected cash flows. The critical issue for an international business is whether from its projected cash flows. The critical issue an international business is whether each foreign subsidiary should hold its own cash balances or whether cash balances should be held at a centralized depository. In general, firms prefer to hold cash balances at a centralized depository for three reasons…………………………
http://forexteq.blogspot.com/
Every business needs to hold some cash balances for serving accounts that must be paid and for insuring against unanticipated negative variation from its projected cash flows. The critical issue for an international business is whether from its projected cash flows. The critical issue an international business is whether each foreign subsidiary should hold its own cash balances or whether cash balances should be held at a centralized depository. In general, firms prefer to hold cash balances at a centralized depository for three reasons…………………………
http://forexteq.blogspot.com/