Acme’s International Working Capital Management Essay Example

This centralized approach also allows Acme International to capture transactions and receive timely information about its cash position.HSBC bank's global computer platform and widespread presence allow it to offer local lending sources for operating cash to Acme International. According to Loosvelt (2006), HSBC has reorganized its investment management division in the past five years to increase its investment business by utilizing in-house products when appropriate. This is made possible through HSBC's new specialized global lending solutions that cater to the development of a wide range of products and services for local lending. Acme International will be able to utilize the bank's in-house investment capabilities to meet its short-term investment needs for excess cash balances. Furthermore, HSBC will facilitate the company's foreign exchange services, thanks to its leadership position in both foreign and domestic markets and its extensive global infrastructure that provides a diverse range of foreign exchange services, as stated by Litan, Masson & Pomerleano (2001). Additionally, the bank's technical platform will assist Acme International with risk assessment and risk management based on their participation in global markets. Consequently, Acme International will be able to pay its bills in various currencies, both domestic and foreign, through the bank.According to Litan, Masson & Pomerleano (2001), Citibank and HSBC are already leading in cash management services due to their utilization of automated platforms and processes, making global services more convenient. In Asia, these banks are preferred by at least 40% of major companies in the region. Moreover, they receive higher-than-average ratings for the quality of their services.