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.
A partir de 1984, a causa de la crisis financiera internacional, ante la escasez de moneda y el exceso de bienes y servicios, Brasil reconocio la posibilidad de implementar el countertrade (modalidad de intercambio comercial) en sus relaciones con los paises africanos, incluida Angola.
These are (i) by using area price model and (ii) countertrade. Whenever there is congestion in Nordic region, two or more than two area prices come into a role within Norway, two in Denmark, and one each in Sweden and Finland.
Defense offsets are a form of countertrade whereby arms importing
A note on countertrade: Contractual uncertainty and transaction governance in emerging economies.
Less developed states, by contrast, often opt for indirect offset, a mix of direct and indirect offset, or even countertrade, as in the case of Indonesia.
Countertrade, pledged credits, and collateralized loans
Target debt arises from automatic overdraft credit granted by other central banks in the Eurosystem when they carry out payment orders without a corresponding countertrade. These payment orders are primarily private and are made to repay international debts, to purchase foreign assets or to buy foreign goods.
As symptoms, we would see desperate companies finding illicit ways to make and receive cash payments and circumvent regulations; we would see barter or "countertrade" deals; regulations aside, companies would have to tolerate massive unpaid bills.
ADIOC 2015 is being organised under the patronage of General Shaikh Mohammed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, by Tawazun Economic Council, in collaboration with the Global Offset & Countertrade Association, UK Aerospace, Defence and Security Industries and a host of UAE and international partners and sponsors.
He explains the conceptual framework and factual background of these transactions, the impact of culture and possible responses from a legal perspective, the sources of the law and their interrelationship and practical significance, international contract law from a general point of view of legal practice, legal specifics of the main forms of non-investment related cross-border business (trade and countertrade and technology transfer), cross-border investments, international tax law, and the settlement of disputes from these transactions.
Countertrade: not just for East-West any more, Journal of World Trade 17(1): 3-11.