Where Cash Balances are located . Should the firm have centralized cash management in the home country? Or should the firm let each affiliate handle it locally? Where are borrowing costs lowest and investment returns highest? McGraw-Hilylrwoin 18-5 Copyright@ 2001 by The McGraw-Hill Companies, Inc. All rightsMcGraw-Hill/Irwin Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved. 18-5 Where Cash Balances are Located. ⚫ Should the firm have centralized cash management in the home country? ⚫ Or should the firm let each affiliate handle it locally? ⚫ Where are borrowing costs lowest and investment returns highest?