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Essay

Countertrade

Essay specific features

 

Issue:

Miscellaneous

 

Written by:

Carlos O

 

Date added:

July 28, 2015

 

Level:

 

Grade:

A

 

No of pages / words:

2 / 457

 

Was viewed:

5483 times

 

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Essay content:

"Countertrade can be used as an effective international business tool. Countertrade plays a part in 20-25 percent of world trade."(ExPA) I will examine the different types of countertrades and examine the pros and cons. Barter - The simultaneous exchange of goods without money. Counter purchase - Offsets the timing of a contract so that one transaction can go forward even though the second transaction requires more time...
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The participating parties sign two separate contracts that specify the goods and services to be exchanged. This type of countertrade is useful if delivery depends on a future event, like a harvest. Since the goods are often not of equal value, some cash is usually involved. Buy-back - One party agrees to provide equipment or technology that enables the other party to produce goods, which are used to pay for the supplied equipment...
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