Discuss the constraints facing international cash management from purely domestic cash management?

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There are several cash management constraints faced by international cash management that do not faced by domestic cash managers some of them are as follows :-

Following are the goal of international cash management I) To have control over cash resources of organization.

II) To invest excess money in short term funds

III) Financing short term funds at the least cost.

All these goals required a proper reporting system for correct transmission of information and on timely basis so that disbursement and collections can be managed properly on timely basis.By doing this international cash manger can lower the cost of moving funds whereas in case of domestic cash manager has to transfer funds from one account to other.International cash manger faces several constraints while doing this such as taxes on fund transfer,several restrictions imposed by the government, transactions cost in forex market etc.

jeff jeffy answered 1 year ago

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