Countertrade

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Countertrade

  1. 1. Andrés Felipe Barragán Rincón COUNTERTRADE
  2. 2. WHAT IT IS? Countertrading refers to a category of international trade in which an exporter agrees to accept payment in the form of goods or services. One such method of trading between nations is called counter trade. Counter trade is an import / export relationship between nations or large companies in which good and/or services are exchanged for goods and services instead of money.
  3. 3. AN ACADEMIC JOKE…
  4. 4. HOW IS IT USED? Countertrade also occurs when countries lack sufficient hard currency, or when other types of market trade are impossible.
  5. 5. INVOLVED PARTIES Both would need to have what the other wants. OR two countries that enter into cooperation contract agree to continuous purchases of goods and services from each other.
  6. 6. TYPES OF THE MODE Barter Switch Trading Counter Pourchase Buyback Offset
  7. 7. ADVANTAGES Gives additional hard currency. Technology advances that the country would not otherwise have. It helps conserve foreign currency reserves of the importing country It allows the importing country to export products for which markets might not otherwise exist.
  8. 8. DISADVANTAGES The main disadvantage of countertrade is that companies have the possibility of handling goods that they are not familiar with.
  9. 9. FIRMS USING COUNTERTRADE
  10. 10. REFERENCES Countertrade. (2013,March 17). In Wikipedia, The Free Encyclopedia. Retrieved 10:59, February 27, 2013, from http://en.wikipedia.org/wiki/Counter_trade Barter. (2013, March 17). In Wikipedia, The Free Encyclopedia. Retrieved 23:25, March 16, 2013 fromhttp://en.wikipedia.org/wiki/Barter [Web log message]. (2010, 03 11). Retrieved from http://www.barternewsweekly.com/2010/03/11/what-is-counter-trade-1851 American Countertrade Association. "Welcome to the ACA Web Site." Washington: American Countertrade Association, 1999. Available from www.countertrade.org . Bost, Patricia J., and John A. Yeakel. "Are We Ignoring Countertrade?" Management Accounting, December 1992, 43-47. http://www.referenceforbusiness.com/encyclopedia/Cos- Des/Countertrading.html#ixzz2O1OWqmG3 Counter trade. (N.A) (2011, 02 11). Retrieved from http://www.slideshare.net/abhijeetkadian/counter- trade Counter trade. (N.A) (2013). Retrieved from http://www.investopedia.com/terms/c/countertrade.asp http://www.investopedia.com/terms/c/countertrade.asp

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