Compensation trade

Compensation trade

The form of countertrade in which an incoming investment is repaid from the revenues generated by that investment.
References in periodicals archive ?
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 basis.
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.