Module 8 – Managing multinational operations
Module 98
MANAGING MULTINATIONAL OPERATIONS8

MODULE 8
OVERVIEW

Managing multinational operations

Objectives
At the completion of this module, you should be able to:
• Ooutline the objectives of maintaining documentation for foreign trade transactions
• Eexplain the key documents for a foreign trade transaction
• Ddiscuss the various payment methods for international trade
• Ddiscuss the characteristics of export finance and risk insurance
• Ddiscuss the objectives and major tasks of current asset management
• Eexplain the features of international cash management, accounts receivable management and inventory management
• Ddiscuss the important differences between domestic taxation and multinational taxation.
Learning resources
Textbook
Eiteman, Stonehill & Moffett 2013, edition 13th01, chapters 175, 17 19 and 20 and 18.
Introduction
This final module of the course encompasses a number of areas that are essential to any multinational finance course but have yet to be covered in this course. In particular, the module focuses on specific areas regarding the management of multinational operations. The module is essentially broken into three sections, all of which have a relevance to each other and to the other topics covered in this course.
The first section focuses on the importance of foreign trade, in particular with regards to the growth potential it offers firms. More importantly, this section centres on the objectives of foreign trade, the key documentation necessary in any efficient foreign trade transaction and the objectives of such documentation and the various payment methods for foreign trade transactions, including trade finance techniques.
The second section analyses working capital management, predominantly within the global setting of a multinational enterprise. In particular, it