International Inventory Management-What is International Inventory Management?
International inventory management is the overall perspective from the multinational corporation and their various branches of the optimal allocation of funds used inventory.
The contents of the international inventory management
International inventory management include the following:
Advance purchase inventory. Multinational companies in many developing countries lack the foreign currency forward contracts trading conditions, export or surplus funds of funds into hard currency, there are many restrictions, in order to prevent the expected devaluation of local currency prices of imported goods and a corresponding increase in the use of one kind of inventory hedging. That is, before the relevant currency depreciation, advance purchase needed goods.
Inventory storage. Multinational corporations in a significant depreciation of local currency where possible, in order to prevent the currency depreciation in local currency increases the price of a stock taken by hedging. That is, before the relevant currency depreciation, the accumulated inventory, increase inventory reserves. However, this has a degree. It involves the accumulation of local currency prices tend to increase with the stock and give up short-term investments in local revenue trade-offs between the chance.
