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 ?
The conference also aims to identify best ways to strengthen cooperation and share information within the offset and counter-trades global culture.
The TRC(TM) is poised to dramatically change barter and counter-trade along with creating, stability and predictability in the financial and business sectors by providing a standard of value for international trade.
Mazur served as the Counter-Trade Division Representative in Poland for the world renowned Cargill International S.
Mazur was the Counter-Trade Representative for John Deere Export, a Division of Deere & Co.
JAKARTA - Industry and Trade Minister Rini MS Soewandi said Indonesia may start importing rice from China, Cambodia and India if there are delays in the settlement of a counter-trade agreement with Thailand, due to disputes over the commodities to be exchanged.
INDONESIA, PHILIPPINES FORM COUNTER-TRADE COMMITTEE
MANILA - The Philippine Chamber of Commerce and Industry (PCCI) and Indonesian Chamber of Commerce and Industry (KADIN) today signed a memorandum of understanding on the establishment of a joint counter-trade committee that would finalize the terms and conditions to effect counter-trade between the two countries.
Optimum Source International is engaged in the Barter and International Counter-Trade Industry.
OTC Bulletin Board: CHCL) announced today that its subsidiary, Asia Continental (ACL), is finalizing an agreement with one of the largest fishery companies in Medan, Indonesia to sign a counter-trade contract.
Presently, Weifang Great Dragon has signed a counter-trade agreement with Bangladesh and is negotiating a similar agreement with Pakistan and Indonesia.
Nevertheless, China Continental is working to take advantage of China's increasing import demand as an important seafood buyer in the region and is in a position to offer a counter-trade arrangement to its clients in Bangladesh, Pakistan, Indonesia and India.
9 /PRNewswire/ -- Tosco Corporation (NYSE: TOS) and Continental Grain Company today announced that Tosco is withdrawing from participation in Continental-Tosco Limited Partnership, their joint venture founded approximately one year ago to pursue opportunities in trading physical quantities of petroleum and its products and counter-trade.