International Marketing Synergy: The Case of American Trading Companies and Debt‐Equity Swaps

Debt‐equity swaps are currently very popular instruments to reduce debt obligations by developing countries. American trading companies can ow be formed with equity participation of US banks and can be exempt from routine anti‐trust legislation as a result of recent legislation. This article suggests that debt‐equity swaps can prove to be a powerful tool for enhancing the formation of new American trading companies and, in the case of existing ones, add to their ability to establish a presence in foreign markets.