Countertrade involves exchanging goods or services for other goods or services instead of money, and can take several forms. It is used to address shortage of convertible currencies, liquidity problems, stimulate jobs and industry, and ensure future contracts. The main types of countertrade include barter (direct exchange), switch trading (involving three parties), counterpurchase (reciprocal buying agreements), buyback (partial payment through future plant output), compensation trade (part goods and part currency), and offset (future unspecified product purchase). An example is India's 2000 barter deal with Iraq to exchange wheat and rice for oil.
International Marketing Management - IntroductionSOMASUNDARAM T
Definition; scope and challenges; difference between international marketing and domestic marketing; the dynamic environment of international trade; transition from domestic to international markets orientation of management and companies; international marketing environment.
International Marketing Management - IntroductionSOMASUNDARAM T
Definition; scope and challenges; difference between international marketing and domestic marketing; the dynamic environment of international trade; transition from domestic to international markets orientation of management and companies; international marketing environment.
> To define globalization and international business and show how they affect each other
> To understand why companies engage in international business and why international business growth has accelerated
> To discuss globalization’s future and the major criticisms of globalization
> To become familiar with different ways in which a company can accomplish its global objectives
> To apply social science disciplines to understanding the differences between international and domestic business
> To define globalization and international business and show how they affect each other
World trade in goods and services – major trends and developmentsmeenee
This ppt shows how trade has emerged and evolved. Further, the graphs and charts, picked from wto reports show the trade pattern wrt the year 2011. Further, recent trends in world trade are mentioned.
egional economic integration
,
levels of economic integration
,
free trade area b) customs union c) common marke
,
the political case for regional integration
,
the economic case for regional integration
,
mercosur
,
regional economic integration in europe
,
evolution of the european union
,
impediments to integration
,
the case against regional integration
,
the andean community
,
classroom performance system
,
the north american free trade agreement
,
asia-pacific economic cooperation
,
regional economic integration elsewhere
,
regional trade blocs in africa
,
political structure of the european union
,
enlargement of the european union
,
the single european act
,
the establishment of the euro
,
central american common market and caricom
> To define globalization and international business and show how they affect each other
> To understand why companies engage in international business and why international business growth has accelerated
> To discuss globalization’s future and the major criticisms of globalization
> To become familiar with different ways in which a company can accomplish its global objectives
> To apply social science disciplines to understanding the differences between international and domestic business
> To define globalization and international business and show how they affect each other
World trade in goods and services – major trends and developmentsmeenee
This ppt shows how trade has emerged and evolved. Further, the graphs and charts, picked from wto reports show the trade pattern wrt the year 2011. Further, recent trends in world trade are mentioned.
egional economic integration
,
levels of economic integration
,
free trade area b) customs union c) common marke
,
the political case for regional integration
,
the economic case for regional integration
,
mercosur
,
regional economic integration in europe
,
evolution of the european union
,
impediments to integration
,
the case against regional integration
,
the andean community
,
classroom performance system
,
the north american free trade agreement
,
asia-pacific economic cooperation
,
regional economic integration elsewhere
,
regional trade blocs in africa
,
political structure of the european union
,
enlargement of the european union
,
the single european act
,
the establishment of the euro
,
central american common market and caricom
International Strategic Management is an ongoing management planning process aimed at developing strategies to allow an organization to expand abroad and compete internationally.
An organization must be able to determine what products or services they intend to sell, where and how the organization will make these products or services, where they will sell them, and how the organization will acquire the necessary resources for these tasks. Even more importantly an organization must have a strategy on how it expects to outperform its competitors.
Blue Ocean Strategy - Summary and ExamplesKhai Biau Yip
This is a workshop presentation developed by KB Yip and YS Lieu for a Learning Institution. It can be easily customized to suit the needs for other organizations. Please contact KB Yip (ymike27@hotmail.com) if you need to get a copy of this presentation.
Derivative Trading and its types features .pdfJitender Dhalia
derivative concept
derivative types
forward contracts
future contract
option contract
swap contract
derivative participants or market player
advantages and disadvantages of derivative
function of derivative
contract between buyer and seller with derivative
derivative examples
4 major types it and suitable examples in each point
basic understanding of derivative
easy concept of contract
Introduction
Definition of contract of sale
Essential elements of contract of sale
Formalities of contract of sale
Sale & Agreement to sell
Difference between sale & agreement to sale
Goods and their classification
Price
Condition & warranties
Unpaid seller
Rights of unpaid seller
Sale and agreement to sell under Law of Contract 2 where the difference or distinctive analysis between sale and agreement to sell is expressely mentioned with some of the provisions prescribed in the statutes of Law
2. Definition :
Countertrade means exchanging goods or
services which are paid for, in whole or
part, with other goods or services, rather
than with money. A monetary valuation can
however be used in counter trade for
accounting purposes. In dealings between
sovereign states, the term bilateral trade is
used. OR "Any transaction involving
exchange of goods or service for something
of equal value."
3. Need of Countertrade :
•Shortage of convertible currency
•Liquidity problems
•Develop new markets
•Stimulation of jobs and Industry
•To balance overseas trade
•Ensure future selling contracts (Counter purchase)
•To gain a competitive edge over other suppliers.
It has become popular as a means of financing
international trade to reduce risks or overcome problems
associated with various national currencies.
5. Barter :
• Exchange of goods or services directly for other goods or services without the use of
money as means of purchase or payment.
Examples : Indo Iraq Wheat and Rice for Oil deal
Example of Barter Trade :
Country A Country B
Cigars Mining Equipment
This means if Country A sells mining equipment to Country B in return for cigars - they will
probably hold some of the mining equipment back until they have made some good profit
from the cigars. .
Indo-Iraq Barter Deal :
Indo-Iraq Barter Deal
In 2000, India and Iraq agreed on an "oil for wheat and rice" barter deal, subject to UN
approval under Article 50 of the UN Gulf War sanctions, that would facilitate 300,000 barrels
of oil delivered daily to India at a price of $6.85 a barrel while Iraq oil sales into Asia were
valued at about $22 a barrel. In 2001, India agreed to swap 1.5 million tones of Iraqi crude
under the oil-for-food program.
6. Switch Trading :
•It involves at least three parties. This means a country may barter goods from
another country which may be of no use to itself so it sells the goods to other
country for hard cash
•Expands Exports
•Enables party to achieve satisfactory outcome
•May be difficult in brokering.
Example- Switch Trading :
•Brazil exported corn to East Germany (before Unification) and received
products in return. Germany did not use corn , so it sold the corn to other
countries for hard cash.
Export Imported goods from country 2 by country 1 to country 3
EXPOR
T
COUNTRY 2 COUNTRY 3
COUNTRY 1 IMPORT
7. Counter purchase :
•Counter purchase is a reciprocal buying agreement. It
occurs when a firm agrees to purchase a certain amount of
materials in future back from a country to which a sale is
made.
•Volume of trade does not have to be equal (may be covered
by cash)
•Covered by two separate contracts.
•More flexible than barter
•Under one of the contracts, the sale of goods between an
exporter and importer is negotiated and paid for in a
specified currency. The second contract obligates the
exporter to purchase goods from the importer at a specified
value over a period of time. Unlike buybacks, counter
purchases involve hard currency.
8. Buyback:
It occurs when a firm builds a plant in a country - or supplies
technology, equipment, training, or other services to the country
and agrees to take a certain percentage of the plant's output as
partial payment for the contract.
Compensation trade
: Compensation trade is a form of barter in which one of the
flows is partly in goods and partly in hard currency.
Offset:
Agreement that a company will offset a hard - currency purchase
of an unspecified product from that nation in the future.
Agreement by one nation to buy a product from another, subject
to the purchase of some or all of the components and raw
materials from the buyer of the finished product, or the assembly
of such product in the buyer nation.