countertrade

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Countertrade

See: barter
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson

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.
Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005
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.
Pandalai has worked on Government policy for India and has contributed to several publications including the "Globalisation of India's Foreign Trade and Role of Counter Trade in that process," and in 2004, he was the recipient of an IMM Award for Excellence for his contribution to national and international trade.
A Libyan technical committee is due to arrive here in mid December to follow up talks on counter trade agreement between the two countries.
He proposed in 1993 that ASEAN and three Northeast Asian countries -- China, Japan and South Korea -- create an East Asia Economic Caucus (EAEC) to counter trade blocs forming then in Europe and North America.
The other demands made by them were that the Government should take action to include coffee in the list of commodities for counter trade and also to take necessary action to persuade the concerned Governments of the EEC Group to exempt the import of coffee from India from the import duties as they have done in respect of African countries.
By using software there are a few ways of placing a scalp trade, you can either place a back and lay bet manually or you could use 'offsetting', which if set to one tick will automatically place the counter trade into the market as soon as your first bet is matched.
While over the counter trade still captures the lion's share of the total trading volume worldwide, the ever-expanding reach of the internet has recently seen the birth of the new virtual service through which smaller-scale investors gain access to the global trading market in the click of a mouse.
Indonesia has many products with quality not inferior to those of Other countries, a Russian official has said The two countries have agreed to promote counter trade to expand bilateral trade.
The purchase of the Sukhoi jets will be through counter trade, most likely with Malaysian palm oil.
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).
Some business leaders have asked the government to postpone the counter trade on the Russian Sukhoi jetfighters.