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Countertrade Free Essay, Term Paper and Book Report

Countertrade What is countertrade? Countertrade is an umbrella term for several sorts of trade in which the seller is required to accept goods, services, or other instruments or trade, in partial or whole payment for its product. Forms include barter, buy-back or compensation, offset requirements, swap, switch, or triangular trade, evidence or bilateral clearing accounts. Some include offsets as a form of countertrade; others make a distinction based on the view that countertrade is a reciprocal exchange of goods and services used to alleviate foreign exchange shortages of importers and that offsets are used as a means for advancing industrial development objectives and may include equity investments (Countertrade, n.d.). This paper will cover how countertrade is used in global financing operation and the importance in managing risks. Countertrade is controversial because this is a trade management practice. However, trade management is widespread. Countries that demand countertrade have reasons to do so. First, a country can gain access to raw materials, products and technology. ......

Word Count: 1064
Page Count: 4.2  (250 words a page / double spaced)


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