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1 – 2 of 2Namita Rajput, Rohit Bhagat and Saachi Bhutani Bhagat
Trade Finance, International Trade, International Business, Emerging Markets, Textile Industry.
Abstract
Subject area
Trade Finance, International Trade, International Business, Emerging Markets, Textile Industry.
Study level/applicability
This case has been designed for the students studying courses on International Business during their graduation/post-graduation. Students are expected to have basic knowledge of International Trade and are also expected to study the different ways of financing the foreign trade to appreciate the case.
Case overview
The case describes the various ways of financing of foreign trade. The case has been designed in the context of an Indian Textile Exporter who has grown steadily over the past years. As business has increased, simultaneously the requirement of funds for the exporter has also increased. Through the medium of conversations, the different ways of financing the foreign trade have been explained in detail. Equipped with this knowledge, students are required to discuss the pros and cons of the different ways of financing the foreign trade. The case also discusses the dilemma of foreign currency hedging. This is a common dilemma faced by importers and exporters as they grow over a period of time.
Expected learning outcomes
This case has been designed to: understand the various ways of financing the foreign trade and understand their merits and demerits; understand the difference between factoring and forfeiting understand how the Exim Bank of India plays an important role in supporting exporters and importers in India; and understand the various ways of hedging the foreign currency risk.
Supplementary materials
Teaching notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes.
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Sanjay Dhamija and Reena Nayyar
The case study is designed to help students understand how the “growth at all costs” attitude can lead to compromised corporate governance in a start-up leading to disastrous…
Abstract
Learning outcomes
The case study is designed to help students understand how the “growth at all costs” attitude can lead to compromised corporate governance in a start-up leading to disastrous implications for all the stakeholders. This case study aims to make students understand the components of the fraud triangle, the impact of financial fraud on various stakeholders, the role of venture capitalist (VC) investors and the importance of good corporate governance in start-ups. The case study presents an excellent opportunity for students to discuss the consequences of ignoring good governance in the pursuit of growth in a start-up. After analyzing the case study, the students shall be able to explain the concept of the fraud triangle and to be able to identify the motivation, opportunity and rationalization of financial irregularities in a start-up; analyze the impact of financial irregularities on various stakeholders; comprehend the business model of VCs and evaluate its influence on VC-funded start-ups; and appraise the importance of good corporate governance in start-ups.
Case overview/synopsis
The case study revolves around the confession of financial irregularities made by one of the cofounders of GoMechanic, a start-up headquartered in Gurugram, India. On January 18, 2023, Amit Bhasin confessed to financial irregularities in the company’s financial statements, leading to laying off 70% of the workforce of the company. GoMechanic had earlier raised close to US$62m [1] from maverick global investors including Sequoia Capital, Tiger Global, Orios Venture Partners and Chiratae Ventures, and was negotiating to raise Series D financing from the Japanese multinational SoftBank with aspirations to be a unicorn (start-up with a valuation of over $1bn). The confession led to a debate about the consequences of the “growth at all cost” culture being followed by start-ups as well as VCs. GoMechanic was not an isolated instance of a lack of governance in the start-ups. The confession had consequences not only for the GoMechanic but for the entire start-up ecosystem of India, which was the third largest in the world. Bhasin stated that the founders take full responsibility for the situation, and they were working on a plan which was most viable under the circumstances. However, it was not going to be easy to regain the confidence of the investors.
Complexity academic level
The case study is best suited for senior undergraduate- and graduate-level business school students and in executive education programs in courses such as corporate governance and ethics, private equity and entrepreneurial finance.
Supplementary material
Teaching notes are available for educators only.
Subject code
CSS 1: Accounting and finance
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