《I-Marketing》 南京大学mkt22.ppt

INTERNATIONAL MARKETING 6e Countertrade Countertrade Countertrade A parallel transaction involving a direct linkage between imported and exported goods or services that is the most advantageous way to exchange goods rather than the use of money as an intermediary. Why Countertrade? Advantages Avoidance of debt and exchange rate volatility Covert reduction of prices Circumvention of price and exchange controls Increasing popularity of bilateralism concept A method of market entry Stability for long-term sales Improves quality of transaction Disadvantages Does not reduce commercial risk May mask dumping activities Does not allow for multilateral settlements Trade is restricted to two parties, each with specific goods to trade Is non-competitive and can erode the quality and efficiency of production Types of Countertrade Counterpurchase or parallel barter simple exchange of goods reverse reciprocity grants access to resources Buyback or compensation arrangement One party purchases the output of another party that is derived from technology or equipment supplied by the purchasing party. Clearing account arrangements Trading parties maintain restricted purpose drawing accounts for thedeposits of their countertrade activities. Types of Countertrade… continued Offsets Purchases by a governmental buyer are matched (offset) to investments by the seller in non-related industries in the buyer’s country. Debt swaps debt-for-debt swap debt-for-equity swap debt-for-purchase swap debt-for-nature swap debt-for-education swap Classification of the Forms of Countertrade Countertrade Usage - By Types Official Positions Toward Countertrade Official U.S. Policy is mixed The Treasury Department finds countertrade noncompetitive. The Office of the U.S. Trade Representative finds countertrade the second best option. The Defense Department maintains a “positive neutrality” towards countertrade. The Commerce Department is most supportive of all government agencies. The Internal Revenue Ser