Binck, a Dutch electronics conglomerate, has operations in three foreign countri

Question

Binck, a Dutch electronics conglomerate, has operations in three foreign countries. Its intra- affiliate transactions during the current week generate payments depicted in the following table. Values represent EUR millions.
                 From                                              
To                  Parent              Brazil               China               Russia
Parent                                                 20                    50                    25
Brazil                         30                                            15                    10
China                         50                    40                                            20
Russia            15                    10                    5
If you apply multilateral netting, what is the NET flow for the parent?

Explanation / Answer

NET Flow Calculation of Parent ( EUR Millions) =

Recd. From Brazil = 20

Recd. From China = 50

Recd. From Russia = 25

Total Inflow = 95

Less :- outflow

Paid to Russia = 15

Net Inflow of Parent =80

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