Nisha Sharma posted an Question
June 30, 2021 • 18:57 pm 30 points
  • UGC NET
  • Commerce

Mam please xplain me pure classifications of counter trade

mam please xplain me pure classifications of counter trade

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  • Sapare bhavani bai best-answer

    Countertrade can be classified into three broad categories: barter, counterpurchase, and offset. Barter Bartering is the oldest countertrade arrangement. It is the direct exchange of goods and services with an equivalent value but with no cash settlement. The bartering transaction is referred to as a trade. For example, a bag of nuts might be exchanged for coffee beans or meat. Counterpurchase Under a counterpurchase arrangement, the exporter sells goods or services to an importer and agrees to also purchase other goods from the importer within a specified period. Unlike bartering, exporters entering into a counterpurchase arrangement must use a trading firm to sell the goods they purchase and will not use the goods themselves. Offset In an offset arrangement, the seller assists in marketing products manufactured by the buying country or allows part of the exported product's assembly to be carried out by manufacturers in the buying country. This practice is common in aerospace, defense and certain infrastructure industries. Offsetting is also more common for larger, more expensive items. An offset arrangement may also be referred to as industrial participation or industrial cooperation.

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