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 ?
Neither has he ever held the position of vice president for countertrade as his last position in PITC was department manager III, countertrade department.
Countertrade and Offset (2014) "Poland's Largest Arms Procurements Will Not be Based on Fully Competitive Tenders: We will Rely on Article 346", Countertrade and Offset, 32(15):1-8.
Examples on countertrade in that period are registered in the interview given by Ramiro Saraiva Guerreiro, the Brazilian Minister of Foreign Affairs, of that period.
97) The most prevalent type of countertrade, counter-purchase,
Chinworth, "The Teeth of the Little Tigers: Offsets, Defense Production and Economic Development in South Korea and Taiwan", in The Economics of Offsets: Defense Procurement and Countertrade, edited by Stephen Martin (London: Harwood, 1996), pp.
Offsets are obligatory countertrade mechanism to drive investments of at least 30% of large global defenceacquisitions into building India nascent defence industrial base.
in The Economics of Barter and Countertrade, Mirus, Rolf, and Yeung, Bernard (Ed), Edward Elgar Publishing Co.
Countries with this type of currency usually prefer or require hard-currency inflows and/or countertrade outflows from multinationals to build up their supply of hard currency.
ADIOC 2011 is organised by the Global Offset and Countertrade Association (GOCA) and the Aerospace Defence Security Group (ADS).
The general literature on trade, countertrade, and barter (non-defense industries)