Problem:
Explain how a centralized cash management system could be beneficial to the MNC and explain why a firm would consider investing in a portfolio of currencies instead of just a single currency?
Additional Information:
This question is from Finance as well as it is an essay on how a centralized cash management system can be beneficial for multinational corporation. Centralized cash management system has its advantages due to netting where cash flow is centralized from different subsidiaries. The essay also describes the importance of investing in a range of currency portfolios rather than a single currency as well.