countertrade

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Countertrade

See: barter

Countertrade

The exchange of goods and services for other goods and services. Countertrade is relatively common in trade with or between cash-poor countries. Most economists estimate that countertrade accounts for between 20% and 25% of global trade volume. See also: Buyback, Switch trading, and Counter purchase.

countertrade

the direct or indirect exchange of goods for other goods in INTERNATIONAL TRADE. Countertrade is generally resorted to when particular FOREIGN CURRENCIES are in short supply, or when countries apply FOREIGN EXCHANGE CONTROLS.

There are various forms of countertrade, including:

  1. BARTER – the direct exchange of product for product;
  2. compensation deal - where the seller from the exporting country receives part payment in his own currency and the remainder in goods supplied by the buyer;
  3. buyback - where the seller of plant and equipment from the exporting country agrees to accept some of the goods produced by that plant and equipment in the importing country as part payment;
  4. counterpurchase - where the seller from the exporting country receives part payment for the goods in his own currency and the remainder in the local currency of the buyer, the latter then being used to purchase other products in the buyer's country See EXPORTING.

countertrade

the direct or indirect exchange of goods for other goods in INTERNATIONAL TRADE. Countertrade is generally resorted to when particular FOREIGN CURRENCIES are in short supply or when countries apply FOREIGN EXCHANGE CONTROLS. There are various forms of countertrade, including:
  1. BARTER: the direct exchange of product for product;
  2. compensation deal: where the seller from the exporting country receives part payment in his own currency and the remainder in goods supplied by the buyer;
  3. buyback: where the seller of plant and equipment from the exporting country agrees to accept some of the goods produced by that plant and equipment in the importing country as part payment;
  4. counterpurchase: where the seller from the exporting country receives part payment for the goods in his own currency and the remainder in the local currency of the buyer, the latter then being used to purchase other products in the buyer's country. See EXPORTING.
References in periodicals archive ?
Wanting to make two ticks is great but putting your counter trade in two ticks higher than you just laid at is gambling, not trading.
Under the counter trade agreement, Indonesia was to receive 200,000 tons of rice from Thailand in exchange for 68 train coaches produced by state rolling stock manufacturer, PT INKA.
Nabati Asahan has won the tender for the first package of payment for the Russian Sukhoi jetfighters under a counter trade scheme under which the government will pay the military equipment including helicopters with commodities including US$15 million worth of crude palm oil (CPO).
The sugar refinery with an annual capacity to process 250,000 tons of raw sugar, will be built under a counter trade scheme with Chinese investor, head of the East Java branch of Bulog Muharto said.
Some business leaders have asked the government to postpone the counter trade on the Russian Sukhoi jetfighters.
For those of you that do not understand how Counter trade works, we suggest you go to http://www.
Four private companies said their have been ready to supply up to 40,000 tons of crude palm oil (CPO) to Russia under the counter trade scheme agreed upon between the governments of the two countries.
Optimum Source International is engaged in the $65 billion barter and international counter trade industry.
The plan to barter Indonesian crude palm oil and China's rice under counter trade scheme will likely fail to come to reality for disagreement on technicalities.
Vietnam agrees to barter 1 million tons of rice with fertilizer, crude palm oil and motorcycle sparepart under a counter trade system with Indonesia.
FOUR INDONESIAN COMPANIES TO HAVE COUNTER TRADE DEAL WITH CHINA, Four Indonesian companies and their Chinese counterparts have struck trade deal under counter trade system.
The controversial Timor national car project stole the limelight again with a new controversy over the government's plan to impose a penalty on PT Timor Putra Nasional (TPN), which owns the project, for failure to meet the counter trade and local content requirements.