ABSTRACT
Tracking a group’s innumerable positions is extremely difficult, however, explaining why most multinational enterprise (MNE) spend large sums on information systems centralising currency data. MNE treasurers have an extremely broad remit, including investment planning, simulation, budgeting, management control, accounting, reporting, cash management, insurance and tax management. But probably the most important job they have is securing the capital that is the life blood of their company’s operations. Investors decide whether to purchase debt issued by a given MNE based on their assessment whether the interest it offers constitutes a true reflection of its solvency. Corporate borrowers must generally pay a “risk premium” above and beyond the interest charged to a zero-risk borrower. MNEs often organise global “road shows” to convince investors worldwide of their shares’ attractiveness. MNEs’ intra-firm trading covers a variety of assets: tangible items like raw materials, parts and finished goods, but also capital or intangible items like loans, fees, royalties, trademarks and dividends.
