9. Developing countries that oppose trade have this characteristic 6. When a U.S. company is invited by China to produce its product in China for the right to sell there, this type of counter-exchange is used A major drawback of counter-exchange is that the promise of value can be uncertain, especially in cases where traded products have significant price volatility. Other drawbacks of counter-trade are complex negotiations, potentially higher costs and logistical problems. In all its forms, counter-commerce provides countries with limited access to liquidity to exchange goods and services with other countries. Counter-trade is part of a comprehensive import and export strategy that ensures that a country with limited national resources has access to the necessary goods and raw materials. In addition, it offers the exporting nation the opportunity to offer goods and services in a larger international market, thereby fostering the growth of its industries. 7. This method of counter-trade involves triangular and non-bilateral trade, counter-trade is a reciprocal form of international trade in which goods or services are exchanged for other goods or services rather than hard currencies. This type of international trade is more common in developing countries where foreign exchange or credit facilities are limited. Counter-trade can be divided into three main categories: barter, counter-purchase and offset.
One of the great advantages of counter-trade is that it facilitates the maintenance of foreign currency, which is a priority consideration for creditworthy countries and is an alternative to traditional financing, which may not be available in developing countries. Other benefits include lower unemployment, increased sales, improved capacity utilization and easy access to demanding markets. 12. The U.S. government authorizes these parties to participate in counter-trade agreements.4 The former Soviet Union bought construction equipment from Japan In return, the Japanese took Russian wood This series of parallel bar sales agreements is 5. This type of counter-trade is used when a seller supplies machines and agrees to purchase the corresponding power (i.e. manufactured by that machine) 10. The companies that are likely to benefit from the counter-exchange are: barter is the oldest counter-trade regime. It is the direct exchange of goods and services of equivalent value, but without cash compensation. The exchange transaction is called “trade.” For example, a bag of nuts can be exchanged for coffee beans or meat. 19.
This method is used when the goods are shipped, but the property is retained by the seller.27 This is not a feature of a letter of credit 30. This type of letter of credit is a performance obligation that guarantees a seller`s obligation under a contract or agreement 8. Counter-trade entails additional costs, which must be borne by 16. This sell-by period makes it the most difficult for an exporter to save money.14 This concept of offer includes unloading at the overseas port with the corresponding fee, which is 28 euros.