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Moving Money Across Borders The international businesss with wholly owned subsidatles faces challenges in moving money across borders and bringing home the profits from those
Moving Money Across Borders The international businesss with wholly owned subsidatles faces challenges in moving money across borders and bringing home the profits from those operations. These challenges are magnified when overseas subsidiaries are not wholly owned. The business partners have their own concerns and interests, and the differences must be worked out for the subsidiary to succeed. The intemational business manager should understand how money is moved across borders and the needs of the business partners and co-owners. Pursuing the objectives of utlizing the firm's cash reserves more efficiently and minimizing the firm's global tax llability requires the firm to be able to transfer funds from one location to another around the globe. International businesses use a number of techniques to transfer liquid funds across borders. A fitm's ability to select a particular policy is severely limited when a foreign subsidiary is partowned either by a local joint-venture partner or by lpcal stockholders. Pursuing the objectives of utilizing the firm's cash reserves more efficiently and minimizing the firm's global tax liability requires the firm to be able to transfer funds from one location to another around the globe. International businesses use a number of techniques to transfer liquld funds across borders. A firm's ability to select a particular policy is severely llmited when a forelgn subsidiary is partowned elther by a local joint-venture partner or by local stockholders. Roll over the items on the right and determine if it is an advantage for the parent company or if it represents a concern for the local firm or ownership. Then, drag each item to the appropriate place on the chart
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