Key questions in making decision about the cash management centralization in multinational company
Keywords:international cash management, centralised cash management, cash management centre
When management of a multinational company considers the making decision about the cash management centralisation it has to answer to some key questions such as is there justified reason for cash management centralisation, will cash management centralisation bring more benefits or costs to the multinational company, to which degree cash management need to be centralised, how to design cash management centre structure, where to locate cash management centre, and which cash pooling technique to apply. If management of the multinational company concludes after considering the first two questions that cash management centralisation is fully economic justified and makes the decision to centralize cash management then considering remained four questions will bring it to the implementation of decision that is previously made. Based on relevant theoretical knowledge and results of empirical research author will o?er some general answers to quoted questions. In this way she will help to managers of multinational companies to objectively assess whether cash management centralization justified and help to one to implement decision to centralize cash management previously made.
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