Case analyze

Financing Global Supply Chain. Maximum two pages Case Analyze plus appendix. these are the requirements for the chase analyze. The Ex-Im Banks reading gives us a chance to really understand how deep and far reaching the 08-09 crisis was. Exports fell, banks could not lend because their balance sheets had shrunk as fast as the value of the subprime paper they held. There were so many “good deals” sitting there without financing. Robert Morin is trying to find a way to help the financing of the 777s… Consider the following questions as you read/write your comments. Your memo should answer Question 3 1.- What role should the EX-IM bank play? 2.- Should this role be different in times of crisis? 3.- Should the EX-IM bank participate in the financing of the three 777s to the Emirates by guaranteeing the interest and principal payments? Why ? 4.- Can you think of any other way to help? 5- What is the cost of the loan guarantee? the subsidy? Remember: Risk-Free Loan = Risky Loan + Loan Guarantee Loan Guarantee = Risk-free Loan - Risky Loan Loan Guarantee = Fee + Subsidy