SmithKline Beckman, the healthcare products multinational (now part of GlaxoSmithKline), has 105 affiliates worldwide There is a great deal of intercompany sales, dividend flows, and fee and royalty payments Each unit makes its intercompany credit, payments, and hedging decisions independently What...

SmithKline Beckman identified six major benefits from centralizing international cash management and ...

SmithKline Beckman, the healthcare products multinational (now part of GlaxoSmithKline), has 105 affiliates worldwide. There is a

Question:

SmithKline Beckman, the healthcare products multinational (now part of GlaxoSmithKline), has 105 affiliates worldwide. There is a great deal of intercompany sales, flows, and fee and royalty payments. Each unit makes its intercompany credit, payments, and hedging decisions independently. What advantages might SKB realize from centralizing international cash management and foreign exchange management?

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...