CASE STUDY 1: BUSINESS

Background:

The world has become more interconnected, and as a result, international cross-
border payments have become an essential part of conducting business across the
globe. Companies of all sizes must navigate the complexities of international
payments to grow and succeed in today's global economy.

Problem:

A multinational company based in the United States is expanding its business

operations into South Africa, a country with strict currency exchange controls. The
company must pay its suppliers in South Africa for their goods and services, but due
to the exchange controls, it is challenging to transfer the funds efficiently and
effectively.

The company is exploring various options for transferring the funds, including using
traditional banking channels, international wire transfers, and cryptocurrency. The
company's finance team is struggling to identify the most cost-effective and efficient
method to transfer the funds while also complying with the regulatory requirements.

Mission:

As a finance consultant, you are tasked with providing guidance to the multinational
company on the most cost-effective and efficient way to transfer funds to its suppliers
in South Africa while complying with the regulatory requirements. Your mission is to
evaluate and compare the various options available to the company, including
traditional banking channels, international wire transfers, and cryptocurrency. You
must also consider the risks associated with each option and provide a
recommendation on the best course of action for the company to take.

As part of your mission, you must address the following questions:

1. What are the regulatory requirements for cross-border payments in South Africa,
and how do they impact the company's ability to transfer funds to its suppliers?

2. What are the advantages and disadvantages of using traditional banking

channels, international wire transfers, and cryptocurrency for cross-border
payments?

3. How can the company mitigate the risks associated with each option?

4. Based on your analysis, what is your recommendation for the company, and why?