Some of the more popular ones are counter-purchase, barter or compensation trade
, buyback, offset, switch trading and evidence accounts.
Under a compensation trade
arrangement, the Chinese provide the plant and labor while the foreign firm provides the technology, equipment, technical expertise, and management.
In each case, Diodes' funding will be recovered through product purchased from Kai Hong on a compensation trade
Trans-Continental Leaf Tobacco Corporation (TCLTC), a wholly owned subsidiary of Standard Commercial Corporation, provided imported tobacco processing machinery under a Compensation Trade
Agreement with the above mentioned partners.