Research On Cash Pool Management Model Of Multinational Corporations

With the development of economic globalization and the increase of cross-border trade and foreign currency business in transnational enterprises,the proportion of foreign currency funds in the management of transnational enterprises is increasing.How to manage foreign exchange funds effectively becomes an important problem to be solved.As a new type of financial products,foreign exchange pool has attracted more and more attention from multinational corporations worldwide.The implementation of the foreign exchange pool can effectively strengthen the centralized management of foreign exchange within the group,improve the efficiency of the use of idle funds,reduce the cost of foreign exchange financing.The cooperation with commercial banks also improves the ability of capital management and risk control of the enterprises,thus improving the competitiveness of the enterprise.Based on the theory of centralization of funds,this paper makes a comparative analysis on the mode of capital concentration of multinational corporations from the perspective of theory,and draws a conclusion that the capital pool is more in line with the fund management of large transnational groups.On this basis,we further analyze the applicable conditions of the capital pool,sum up the role and existing problems of the foreign exchange fund pool,and take the case of China grain group as a case,set up a foreign exchange fund pool for the COFCO,and collect and manage the foreign currency funds in the accounts of the subordinate companies and the experience and experience of unified management.A summary is made.The case introduces the new fund pool framework of COFCO group by introducing the problems faced by the COFCO group,focuses on the analysis of the mode and process of the foreign exchange fund pool of China Grain international,introduces the management steps of the capital pool,and further analyzes the financial situation in the capital pool mode,its risk,the operation effect under the foreign exchange fund pool mode and the operation effect.The following problems should be paid attention to in the follow-up process,in order to provide some reference for the follow-up development of the COFCO capital pool,and also provide suggestions for other multinational corporations to prepare the fund pool.Nowadays,the world economy tends to be globalized,and transnational corporations play an important role in the process of globalization.In recent years,China has paid more and more attention to foreign trade,and the foreign currency business volume of transnational enterprises has increased,and the proportion of it in the fund management of transnational enterprises has also increased.How transnational corporations manage foreign exchange capital is an urgent problem to be solved.In the process of capital allocation,it should not only play the role of external capital market,but also play an important role in the internal capital market.Multinational companies follow foreign exchange funds pool,which is new financial products,as it can effectively enhance the centralized management off foreign exchange funds in group company.In addition,it can promote the use of idle funds efficiency,reduce the financing cost of foreign exchange and cooperation with commercial Banks also promoted enterprise capital management and risk control ability,so as to improve enterprise competitiveness.