You are not currently logged in.
Access your personal account or get JSTOR access through your library or other institution:
If You Use a Screen ReaderThis content is available through Read Online (Free) program, which relies on page scans. Since scans are not currently available to screen readers, please contact JSTOR User Support for access. We'll provide a PDF copy for your screen reader.
Since scans are not currently available to screen readers, please contact JSTOR User Support for access. We'll provide a PDF copy for your screen reader.
Preview not available
Cross-border cash transfers are required to effect intra-MNC payments. These entail transaction costs, e.g., direct transfer costs, opportunity costs of funds in-transit, and foreign exchange spreads. In addition, they expose the MNC to the risk of currency fluctuations and may lead to the necessity of costly hedging operations. In this paper a mathematical program is developed to aid the financial manager in identifying the optimal transfer schedule. The model uses a multiperiod framework and utilizes the existing opportunities for payment netting as well as leading and lagging of invoices. It yields a transfer schedule that conforms to foreign exchange control regulations and internally imposed exposure policies of the MNC.
Financial Management © 1986 Financial Management Association International