Payee (thousands)
Payor (thousands)		Australia	Belgium	Germany	Japan	Singapore	UK	US
	Australia		200	80	102	151	265	121
	Belgium	284		199	166	104	181	57
	Germany	147	141		220	117	192	155
	Japan	81	140	266		239	209	103
	Singapore	152	91	175	177		155	150
	UK	183	58	55	170	53		97
	US	147	101	279	285	173	276

A company has affiliates in seven countries. Each affiliate enters into transactions with the other affiliates in the course of business. The company has determined that on average a remittance from one affiliate to another costs $30. This cost includes bank fees for international funds transfer, costs in each affiliate to process the payment/receipt, and average cost to exchange currency. (Except for this cost, the information for each question is specific to that question.)

3a. If the affiliates use bi-lateral payment netting, what payments will be made?

b. What is the total transaction cost for all payments with bi-lateral payment netting?

4a. If the company uses multi-lateral payment netting, what payments should be made? (There are more than one ways to arrange these payments. You only need to indicate on possible way.)

b. What is the total transaction cost for all remittances with multi-lateral payment netting?

5. If the company uses a re-invoice center, there are likely to be more payments and as a result higher transaction costs than with e.g., multi-lateral netting. Why might the company still elect to use a re-invoice center?