In 1993 Thailands Champaca, a major Asian trading company, was attracted to the newly opened Russian market. A promising deal to supply canned fruits (pineapple) produced by a local Thai company, Pinco, was waked out. A series of mistakes and unforeseen circumstances caused the deal to collapse with serious losses for Champaca.
The case is appropriate for student courses covering International Business, focusing on payment terms, intermediaries, documentation and risk management. It could also be used for general management programs focusing on Asian Management styles, entrepreneurship and the threats / opportunities of doing business in transitional economies.
- CONTRACT / TRUST
- CHINESE MANAGEMENT
- NEW MARKETS
- LETTER OF CREDIT