5. This type of counter-trade is used when a seller supplies machines and agrees to buy the associated production (i.e. made by this machine) A great advantage of counter-trade is that it facilitates the preservation of foreign currency, which is a major consideration for countries with low cash funds and offers an alternative to traditional financing, which may not be available in developing countries. Other benefits include lower unemployment, increased sales, better capacity utilization, and easy entry into difficult markets. 10. The undertakings eligible for counter-trade are: 7. This method of counter-trade involves triangular trade rather than bilateral trade 6. When an American company is invited by China to manufacture its product in China to obtain the right to sell there, this type of counter-trade is used 12. The U.S. government allows these parties to participate in counter-trade agreements Barter is the oldest counter-trade agreement. This is the direct exchange of goods and services of equivalent value, but without compensation in cash. The exchange transaction is called a transaction. For example, a bag of nuts could be exchanged for coffee beans or meat.
Counter-trade is a reciprocal form of international trade in which goods or services are exchanged for other goods or services and not for hard currency. This type of international trade is more common in developing countries where foreign exchange or credit facilities are limited. Counterpart trading can be divided into three broad categories: barter, counter-purchase, and clearing. 4. The former Soviet Union bought construction machinery from Japan In return, the Japanese took Russian wood This set of parallel cash selling agreements is 29. This type of letter of credit gives the exporter maximum security and a minimum delay in accepting payment 14. This offer period includes unloading at the overseas port with the corresponding duty of 30. This type of letter of credit is a performance bond that guarantees a seller`s obligation under a contract or contract.23 This payment method provides goods to a buyer prior to payment 15.
To save money, the exporter should not quote In a compensation agreement, the seller helps with the marketing of products manufactured by the buyer`s country or has part of the assembly of the exported product carried out by the manufacturers in the buyer`s country. This practice is common in aerospace, defense and some infrastructure industries. Compensation is also more common for larger and more expensive items. A compensation agreement can also be called industrial participation or industrial cooperation. 17. If an exporter wishes to minimize currency convertibility problems, this selling term should be used 3. A single direct and simultaneous exchange of products of the same value is 26. This method of payment represents the lowest risk for an exporter.28 This financial instrument is a document issued by a bank at the request of a buyer in favor of a seller and promises that the bank will pay an agreed sum of money after receipt of certain documents 16. This sales period makes it more difficult for an exporter to save money under a counter-sales contract, the exporter sells goods or services to an importer and commits to purchase other goods from the importer within a certain period of time. .
