China is a successful destination for companies that are looking to receive a good return on their investment and make part of the most outstanding economy in the world. The adverse condition promoted by the state, impact directly the performance of multinational companies, one of these consequences is the Trapped Cash caused by the regulated environment in which the corporation is developing the business. The specific problem of the trapped cash will be analyzed in three different levels; the first one is China in order to familiarize corporations with the environment, generating greater understanding of the basic concepts and concerns that the organization would face. Second, the current theoretical solutions to the problem that will offer and a handful of solutions; third and finally, the case of Alcatel Lucent, a multinational company that has a long background in the Chinese environment, and is struggling because of the trapped cash in China, however, is implementing a solution to solve the liquidity problems of the organization. Concluding the study is possible to highlight the various approaches to increase the liquidity of the company by improving the management practices for the trapped cash situations. Nonetheless, while the roots of the trapped cash remain, a significant amount of cash will be freed.
Agregar etiquetas para The liquidity consequences of China’s socioeconomic environment in multinational companies = Las consecuencias del sistema socioeconómico chino sobre la liquidez de la empresas multinacionales