Determine the direction funds should flow to the mnc

Reference no: EM13897538

Euroshipping is also considering developing a multilateral netting system.

a. Given the cumulative monthly payments in the following payments matrix, derive the minimum transfers that could be made.

German Parent 9.3 8.1
Spanish Affiliate 9.6 7.9

In each of the following cases, determine the direction funds should flow and the return to the MNC of transferring EUR1,000,000:

a. The German parent has positive funds; the Spanish affiliate has negative funds.

b. The German parent has negative funds; the Spanish affiliate has positive funds.

c. The German parent has positive funds; the Spanish affiliate has positive funds.

d. The German parent has negative funds; the Spanish affiliate has negative funds.

Reference no: EM13897538

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