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Section 25 补偿贸易Compensation Trade I. 要点概述Main Points 1. What is compensation trade? 1. What is compensation trade? Compensation trade is the form of counter-trade in which an incoming investment is repaid from the revenues generated by that investment. It is a special type of international business in operation today. In this type of trade, one company sells capital goods to a company or a manufacturer in another country; and the value of the capital goods will be repaid by the resultant products produced with the imported capital goods. Compensation trade usually involves in processing, assembly and exchange of goods. 2. What are the two main forms of compensation trade? Direct product compensation and indirect product compensation are the main two forms of compensation trade. The former refers to repayment of the cost of the imported capital goods with products produced directly with the equipment or of the production line supplied by the foreign company; the latter refers to repayment of the cost of the imported capital goods with products wholly or partially produced with equipment other than that imported. The contracting party supplies on a credit basis the other contracting part with capital goods and technologies and promises at the same time to purchase a certain quantity of or a certain amount of products from the other contracting party. 3. What items are usually included in a compensation contract? A compensation contract usually covers transactions, payment, reimbursement, standard money and price standard, interest, technical service, additional equipment, insurance, liability for breach of argument, performance guarantee, amendment and Force Majeure, etc. II. 商界名言 Business Sayings 1. To save time is to lengthen life. 节约时间,延长生命。 2. He that gains time gains all things. 赢得时间,赢得一切。 3. Variety is the spice of life. 变化是生活中的香料。 4. Penny wise, pound foolish. 小事聪明,大事糊涂。 5. Don’t put the cart before the horse. 本末倒置,主次不分。 6. Do not keep all the eggs in o
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