EconPapers    
Economics at your fingertips  
 

Payments Netting in International Cash Management: A Network Optimization Approach

Venkat Srinivasan and Yong H Kim
Additional contact information
Venkat Srinivasan: Northeastern University
Yong H Kim: niversity of Cincinnati

Journal of International Business Studies, 1986, vol. 17, issue 2, 1-20

Abstract: Rationalization of global production and operations by multinational corporations have created a large volume of international company funds flows. By a process of netting interaffiliate payments, significant savings in cost can be realized. Shapiro formulated the multinational payment netting problem using linear programming. This paper presents a network optimization approach that is both computationally efficient and intuitively appealing. Further, the proposed approach recognizes the need to integrate the netting system with the MNC's overall cash management systems as well as by explicitly accounting for cash outflows on account of transfer costs. Additionally, the paper provides insight into actual corporate netting practices.© 1986 JIBS. Journal of International Business Studies (1986) 17, 1–20

Date: 1986
References: Add references at CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
http://www.palgrave-journals.com/jibs/journal/v17/n2/pdf/8490421a.pdf Link to full text PDF (application/pdf)
http://www.palgrave-journals.com/jibs/journal/v17/n2/full/8490421a.html Link to full text HTML (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:jintbs:v:17:y:1986:i:2:p:1-20

Ordering information: This journal article can be ordered from
http://www.springer. ... nt/journal/41267/PS2

Access Statistics for this article

Journal of International Business Studies is currently edited by John Cantwell

More articles in Journal of International Business Studies from Palgrave Macmillan, Academy of International Business
Bibliographic data for series maintained by Sonal Shukla ().

 
Page updated 2019-06-04
Handle: RePEc:pal:jintbs:v:17:y:1986:i:2:p:1-20