COUNTERTRADE DIANA PAMELA RAMÍREZ. BUSINESS 1.
COUNTERTRADE
DIANA PAMELA RAMÍREZ.
BUSINESS 1.
What is it ? means to exchange goods or services paid for in whole or in part, with other goods or services instead of moneyThis expression is used associated to foreign trade and international trade between countries.Born and developed as a result of the inability or inconvenience of purchasing goods in cash, in the event that there is a shortage of foreign exchange, helping to formalize sales that otherwise would not have been possible.
COUNTERTRADE
Since the beginning of time mankind has used some form of countertrade in order to meet their personal needs and even though the concept has remained the same, many things have changed over the centuries with respect to countertrade.the modern day countertrade agreements began and how countries require many different rules and regulations when it comes to countertrade.
HISTORY
They are:* Increase overall bilateral trade.* Avoid currency transfer.* Promote the development of the countries involved.* Overcome or minimize the effects of the barriers imposed by countries with protectionist economies.* Increasing international trade.* Avoid development of external indebtedness.* Create new job opportunities.
BASIC OBJECTIVES OF COUNTERTRADE
FORMS COUNTERTRADE
countertrade
BARTER
Clearinghouse Arrangement
Switch Trade
Buy Back
Counter Purchase
Offset
Countertrade, as we know it today,
came about in the 1960’s
as a way for the Soviet Union
and the Communist states of Eastern Europe to purchase imports because their currencies were nonconvertible.
The technique became popular during the 1980’s among many developing nations who did not have the means to purchase necessary imports.
COUNTERTRADE
The direct exchange of goods between merchants, goods or services directly for other goods or services without using money as a means of purchase or payment.
BARTER
is a form of barter traders agree buy a certain amount of goods from each other. Establish accounts with each other that are debited and accredited as necessary. At maturity arrangement, participants in money or cancel goods.
CLEARINGHOUSE ARRANGEMENT
Practice in which a company sells to another its obligation to make a purchase in a given country.
SWITCH TRADE
occurs when a company builds a plant in a country - or materials technology, equipment, training, or other services to the country and agrees to take a certain percentage of the production plant as part payment for the contract.
BUY BACK
Sales of goods and services to a company in another country by a company that is committed to making a future purchase of a specific product from the same company in that country.
COUNTER PURCHASE
Agreement by one nation to purchase a product from another, subject to the purchase of some or all components and raw materials from the buyer
of the finished product.
OFFSET
*It ineficiente. Slow and complex negotiations* Some argue that such transactions alterfundamental operations of the freemarket, and therefore the resources will be usedinefficiently.* Increasing costs.* Transactions that do not make use of the moneyrepresent a major step backwards in termseconomic development.* Brokerage costs.* Creates uncertainty.
DISADVANTAGES
* Fighting inflation.
* Relieves deficit payment
* Reduces the volume of external debt
* Facilitates the entry of technology
* Facilitate the development of new markets.
* Stops processes unfair competition from third countries.
* Reduces external marketing costs.
ADVANTAGE
* There are advantages and disadvantages with the countertrade.
*It can benefit both participants and in some circumstances is the only trade
possible.
* Whether transactions
countertrade good or bad for the
global economy, the fact is that they will continue
increase in the near future as
world trade increases.
GENERALIZATIONS OF COUNTERTRADE
requires use of money
yes
Counter purchaseBuybackOffset
no
barter
Agreementreciprocallimited to
the purchase
real?
yes
no
BuyBackCounter Purchase
Offset
Does the exporterreceived
backgoods?
yesnoCounter Purchase Buyback
Does it extend to
a long periodand involves a
basket of goods
yes
no
Clearing
Barter
otherstakeholders
involved?
yes
no
Switch Trading
Clearing
http://en.wikipedia.org/wiki/Counter_tradehttp://bizcovering.com/international-business-and-trade/the-10-things-you-need-to-know-about-types-of-countertrade-an-analysis-of-trading-goods-and-services-without-currency
/ http://
www.primeraexportacion.com.ar/documentos-tecnicos/234-intercambio-compensado-permuta-comercial-contracomercio-countrade.html
http://apuntesingenierialegal.blogspot.com/2009/02/objetivos-basicos-del-el-countertrade.html
http://www.carlospitta.com/Courses/Gestion%20Financiera%20Internacional/Lectures/Sesi%C3%B3n%206%20(Cap%2020
BIBLIOGRAPHY