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Compagnie Case Study on Payments

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1. By 1889, how much did the French company Compagnie lost in building the canal? How much did they demand when they first enter the negotiation?
2. How much would US pay the French company?
3. Since there is a huge difference, what are the tactics they played to justify their claims?
4. What dramatically changed the whole situation so US wins the negotiation?
5. How did US secure its own interests? Any additional comments from this case?

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1. By 1889, how much did the French company Compagnie lost in building the canal? How much did they demand when they first enter the negotiation?

By 1889, the Compagnie had gone bankrupt and had lost roughly around $287 million U.S. Initially, they demanded $109 million.

2. How much would US pay the French company?

The US paid the French company $40 ...

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