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Compensation trade

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Compensation trade
The form of countertrade in which an incoming investment is repaid from the revenues generated by that investment.
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Under a compensation trade arrangement, the Chinese provide the plant and labor while the foreign firm provides the technology, equipment, technical expertise, and management.
Should your global strategy include China? by Ogilvie, D.T.; Fitzsimmons, James / Business Perspectives
In each case, Diodes' funding will be recovered through product purchased from Kai Hong on a compensation trade basis.
Diodes announces additional capacity with new sourcing and marketing ... by Business Wire
 
 
 
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