Crosswell International, Inc.
This case is designed as a vehicle for discussing the impact that foreign exchange risk and cross-border financing has on a company's ability to be price competitive in a foreign market. It highlights the fundamentals of trade finance and illustrates how an importer might utilize the principle trade documents to lower his effective costs of financing imports. The case also focuses on the need for financing as part of the package of consummating international export sales.
This case is applicable to a number of different academic areas of interest, including international marketing, international trade, international finance and corporate finance. It has also been used successfully in executive programs in which a simplified yet quantifiable trade problem is presented.