Multinational Cash Flow Management Study

End of 2008, the crisis of second mortgage arise the financial crisis. And the global economy depression is coming accordingly. Somebody call it Hibernation. But which is the key elements for a corporation to survive the hibernation? I think CASH FLOW is an essential one.Cash flow management is the core of financial management, and financial management directly affects the enterprise management quality. Therefore, cash is king that is totally correct. Cash flow management has a huge system of theory and practice, and the multinational companies management which affected by many different elements is complicated.So multinational cash flow management is very complex problem.With the economic development, more and more Chinese enterprises to set up subsidiary on abroad, while many multinational enterprises pay more attention to the Chinese market and set up offices in China. But I think the cash flow management problems we face is probably similar, which is mainly the following points:From the corporate point of view, cash flow is the result of company's overall operating. It reflects the problem of its own business operations and management. Therefore any solution focus on cash flow itself is a temporary solution. And from the financial management perspective, and the cash flow security level of many multinationals is not very good. At the same time, the capital liquidity of most company can't meet the management demand.In this article, it is summarized the main points of the current cash flow management theory and my practical experience, I concluded that the core objective of multinational cash flow management is the safety and liquidity. From these two goals, combined with my practical experience, I give the solution from a strategic and tactical points. From strategy point, the company must change the concept of cash flow management. To improve internal management processes first and then solve the cash flow problem. From tactics points, to multinational companies, the cash flow management should focus on accounts receivable management, supply chain management, multinational capital centralized management approach, and how to improve financial internal control system to enhance the cash flow point of management. These two parts are the main innovation of this article.