商务英语综合教程课件杜凤秋 ISBN9787810788113 PPT international tradechap.29 some understanding of countertrade.pptVIP

Some Understanding of Countertrade Although cash is the preferred method of payment, more and more, countertrades are becoming an important part of trade with Eastern Europe, China, and to a varying degree some Latin American and African nations. The key problems in successfully consummating countertrade transactions are (1) accurately establishing the market value of the goods being offered and (2) disposing of the bartered goods once they are received. Most countertrades judged unsuccessful are the result of one or both of the problems cited not being properly solved. Types of Countertrade countertrade includes four distinct types of transactions: 1. barter trade 2. compensation deals 3. counter purchase 4. buy-back Barter Trade Definition: Barter is the direct exchange of goods between two parties in a transaction. Barter Trade Requirement for sellers: In a barter transaction, the seller must be able to dispose of the goods at a net price equal to the expected selling price in a regular, for-cash transaction. Further, during the negotiation stage of a barter deal, the seller must have some knowledge of the market and the price for the items offered in trade. Barter Trade Information Channel: Because of the almost limitless range of goods and quality grades possible and a lack of expertise or information necessary, sellers rely on (barter houses) to provide information and find potential buyers for the goods received. Another possibility is the use of a switch trader, an outsider who will “switch” the traded goods to a third country where a market exists. Compensation Deals Compensation deals involve payment in goods and in cash. for example: A seller delivers lathes to a buyer in other country and receives 70 percent of the payment in convertible currency and 30 percent in tanned hides and wool. In an actual deal, General Motor Corporation sold $17 million worth of locomotives and diesel engines to Yugoslavia and took