The cash manager of a domestic firm should source funds internationally to obtain the lowest borrowing cost and to place excess funds wherever the greatest return can be earned regardless of currency.

Question

Quizplus · Accepted Answer

Sourcing funds internationally can potentially provide lower borrowing costs due to differences in interest rates and other factors in different markets. Additionally, placing excess funds in areas with higher returns can increase profitability for the company regardless of the currency.

The Cash Manager of a Domestic Firm Should Source Funds