1.) Bankers Acceptance
a.) Describe how foreign trade would be affected if baks did not provide trade related services?
b.)How can a banker’s acceptance beneficial to an exporter an importer and a bank?
2.) International Cash Management
Discuss the general functions involved in international cash management. Explain how the MNC’s optimization of cash flow can distort the profits of each subsidiary.
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a). Due to the risks associated with cross-border transactions, there are several transactions that can be conducted only when the bankers provide the acceptance. Therefore, if the bankers did not provide the trade related services, there would be lack of credible guarantee and this would make the parties cautious to enter into transactions with other economies. Banks also assist in the electronic transfer of funds and this makes the process of foreign trade easy and reliable...