...CounterTrade University of Phoenix MGT 448 April 17, 2011 Since the beginning of civilization, trade has existed. For thousands of years, nations have traded silk, spices, precious metals as well as animals. As centuries pass, trade between nations has advanced in terms of products. Today, nations deal in trading countless types of products including electronics, liquor, and military equipment. One type of trading among nations is known as countertrade. Countertrade is an association between two parties in which goods and/or services are traded for goods and/or services as an alternative to money. These parties can be between companies as well as countries. For example, a large company in Europe can trade a local product as a form of payment to another company in the United States for a particular American product. If a nation’s currency is not exchangeable or no good overseas, they may offer a commodity or other product in place of cash (Gonzales, 2011). One of the most familiar events involving countertrade was between global soft drink giant, Pepsi and the former U.S.S.R. who had limited access to foreign currency due to its communist ideology. In 1972, Stolichnaya Vodka was used as payment to Pepsi by the Soviet nation for shipping syrup to the U.S.S.R. Pepsi became the first foreign product sold in the U.S.S.R. Because of this incident, Pepsi now has the marketing rights of all Stolichnaya Vodka in the United States (West, 1996). There are...
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...INTRODUCTION Laws are enacted to apply according to the needs of the times. The current state of affairs and circumstances are reflected in the salient provisions of these statutes taking into account past occurrences and events that more often than not becomes the catalyst that moves the legislature in creating a law to address the ever growing need of society for order, under the rule of law. Though the legislature in enacting a law try to take into consideration every pertinent variable, seldom do they try to anticipate unforeseen events and circumstances far away into the future. The wisdom behind this practice is that the constitution itself has provided set mechanisms to remedy the imperfections as circumstances evolve and unfold, via the tools of amendment or revision. Verily, the wisdom of the constitution in providing for the twin provisions on amendment and revision, is to cure laws previously passed that are no longer in tune with the present circumstances of the times. Hence, as society and circumstances evolve, so must the laws that preserve the orderly administration of justice, order and peace be attuned to maintain its balance. This paper therefore, seeks to review Republic Act 7877 “AN ACT DECLARING SEXUAL HARASSMENT IN THE EMPLOYMENT, EDUCATION OR TRAINING ENVIRONMENT, AND FOR OTHER PURPOSES.” This paper in its review, shall endeavour to determine whether the salient provisions of Republic Act 7877 can still be deemed attuned to the circumstances...
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...Hi, my name is Typhinia Turner I’m 45 years old and I live in Painter VA. I don't have any children but I have 4 God-children. I currently work at Perdue Farms in Accomac, VA for 14 years which is a poultry plant. I'm a Line Leader and Ingredient Clerk. As a Line Leader I have 65 people that work under me. I enjoy working with them sometimes. I can be very challenging at time dealing with that many people. Each person that work for me has the own personality. One day everybody will come to work with a good mind set to do their work and go home. Then there are day where all hell break lose. When it get like that I thank God that I have a strong mind that I can handle any situation. The department that I work in is Marination. My department marinates whole birds. We have a machine that injects different flavors into the birds. As an Ingredient Clerk I have to keep track of all the spices that is use to inject into the whole birds. We inject flavor like Lemon Pepper, Honey, BBQ, and Original. Far as hobbies I love to travel!!! I have been on at least 10 cruises. I have cruised on Royal Caribbean, Celebrity, and especially Carnival. I have flown to Jamaica on Jamaica Air. I enjoyed every minute of my vacations. I belong to the Order of the Eastern Star and I love my sisters. I’m also a member of Shiloh Baptist Church. I love just being around family and friends. I’m pursuing my BS in Business Administration. I have my Associate of Science in Business Management. I hope that all...
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...10 Reasons to go International The international marketplace offers a world of business opportunities for American companies seeking to sell or source products worldwide. Not only can you tap into a world marketplace of 7 billion people, but according to business.gov, companies that do international business grow faster and fail less often than companies that don't. Written by: Richard P. Biggs, CEO Atlantric LLC Portland, OR, USA 1 678 231 9195 ~ www.atlantric.com 10 Reasons to go International Richard P Biggs|Founder & CEO|Atlantric llc 10 Reasons to go International If you are pondering whether to go global, recognize the fact that you are “global”, in that you very likely have global competitors. You are in a competitive global marketplace now. Objectives of Market Entry Companies decide to go global and enter international markets for a variety of reasons, and these different objectives at the time of entry should produce different strategies, performance goals, and even forms of market participation. However, companies often follow a standard market entry and development strategy. The most common is sometimes referred to as the “increasing commitment” method of market development, in which market entry is done via an independent local partner. As business and confidence grows, a switch to a directly controlled subsidiary is often enacted. This internationalization approach results from a desire to build a business in the countrymarket...
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...CHAPTER TWO LITERTURE REVIEW INTRODUCTION Reading the news papers, listening to news on the various electronic media, one cannot dispute the fact that Internal Controls in public sector work places are very less than standard satisfactory. The work places in this country appear to be characterized by immoral acts such as selfishness, greediness, misconduct, falsification of accounts, bribery and abuse of power. The result is that people have no confidence in the public sector organization in which they work. Attitudes associated with behavior such as anyone who is wealthy and successful is suspect. In public mind, a person becomes wealthy by cheating the public who is the tax payer. According to Woode, a person becomes wealthy by cheating the tax man through evasion and exploiting his labor force and price rifling. Immoral behavior involves people at all levels of organization such as artisans, professionals, managers, employers and even the executives. Internal controls are moral principles or beliefs of what is right or wrong. This belief guides individuals in their dealings with others and groups especially stakeholders (management and employees) and provides a basis for deciding whether behavior is right or wrong. Internal Controls helps people to determine moral response to the situation in which the best course of action is unclear. Internal Controls goes beyond rules or what the law says but rather is the accepted norms of a particular society. Thus, how to...
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...Advantages and Disadvantages of Countertrade Countertrade is an umbrella term used to describe many different types of transactions each in “which the seller provides a buyer with goods or services and promises in return to purchase goods or services from the buyer”. It may or may not involve the use of currency, as in barter. By far the largest indirect method of exporting is countertrade. Competitive intensity means more and more investment in marketing. In this situation the organization may expand operations by operating in markets where competition is less intense but currency based exchange is not possible. Also, countries may wish to trade in spite of the degree of competition, but currency again is a problem. Countertrade can also be used to stimulate home industries or where raw materials are in short supply. It can, also, give a basis for reciprocal trade. Countertrade can take many forms. These are: • Barter- is the direct exchange of one good for another. It requires a double coincidence of wants. Barter trade can take a number of formats. Simple barter is the least complex and oldest form of bilateral, non – monetarised trade. Often it is called "straight", "classical" or "pure" barter. • A clearinghouse arrangement- is a form of barter in which the traders agree to buy a certain amount of goods from each other. They set up accounts with each other that are debited and credited as needed. At the maturity of the arrangement, the parties...
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...PENGEKSPORAN, PENGIMPORAN, DAN IMBAL DAGANG DISUSUN OLEH: Mutia Putri Ayu R. 135020200111019 Karlina Siti F. 135020200111071 Rista Amalia J. 135020207111010 Anggie Rena S. 135020207111012 Anindya Kusuma M. 135020207111016 Pangraetha Meydhawani A. 135020207111024 Jurusan Manajemen Fakultas Ekonomi dan Bisnis Universitas Brawijaya 2015 I. PENDAHULUAN Meskipun kita menerima begitu saja bahwa banyak bisnis besar mengekspor atau memproduksi di luar negeri, beberapa usaha kecil juga melakukan hal serupa dengan manfaat yang besar. Volume kegiatan ekspor dalam perekonomian dunia meningkat karena ekspor menjadi lebih mudah. Pada saat yang sama, komunikasi modern dan teknologi transportasi yang semakin canggih telah meringankan masalah logistik yang terkait dengan pengeksporan. Di sisi lain, pengeksporan tetap menjadi tantangan bagi banyak perusahaan. Perusahaan yang ingin mengekspor harus mengidentifikasi peluang pasar asing, menghindari sejumlah masalah tak terduga yang sering dikaitkan dengan melakukan bisnis di pasar asing, membiasakan diri dengan mekanisme pembiayaan ekspor dan impor, dimana bisa mendapatkan pembiayaan dan asuransi kredit ekspor, dan belajar bagaimana harus berurusan dengan risiko nilai tukar. Mengatur pembayaran untuk ekspor ke negara – negara dengan mata uang yang lemah dapat menjadi masalah. Hal ini membawa kita ke topik perdagangan, dimana pembayaran untuk ekspor diterima dalam barang dan jasa sebagai pengganti uang. ...
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...sufficient lines of credit. Sometimes companies and coun¬tries find it practically impossible to generate enough foreign exchange to pay for imports. In recourse, they devise creative ways to buy products. For example, Indonesia traded 40,000 tons of palm oil, worth about US$15 million, with Russia in exchange for Russian Sukhoi fighter aircraft. This trade, like others that fall under the umbrella term countertrade, illustrates that buyers and sellers often find creative ways of settling pay¬ment for imports and exports. Countertrade refers to any one of several different arrangements that parties negoti¬ate so that they can trade goods and services with limited or no use of currency. Technically, countertrade can be divided into two basic types: barter, based on clearing arrangements used to avoid money-based exchange; and buybacks, offsets, and counter purchase, which are used to impose reciprocal commitments. Countertrade is an inefficient way of doing business. By default, companies prefer the straightforward efficiency of cash or credit. In the case of countertrade, rather than sim¬ply consulting current foreign exchange rates, buyers and sellers must enter complex and time-consuming negotiations to reach a fair value on the exchange—how many gallons of palm oil for how many planes, for example. In some situations, the goods that are sent as payment may be poor quality, packaged unattractively, or difficult to sell and service. Also, there is a lot of room for...
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...Journal of Comparative Business and Capital Market Law 5 (1983) 347-351 North-Holland ADVANTAGES AND DISADVANTAGES OF COUNTERTRADE * Jacques de MIRAMON ** 1. Introduction Countertrade practices have expanded during the past decade. Long associated primarily with East-West trade, they appear to be spreading to other areas. The international community, however, has not been effective in addressing these practices which are, in large measure, contrary to the basic tenets of free and multilateral trade. The Eastern countries had refused to discuss the matter with their trading partners until a meeting with Western countries at the U.N. Economic Commission for Europe (Geneva) in November 1981. Unfortunately, this meeting ended in a deadlock. In light of the fundamental differences between centralized Eastern European economies and the decentralized Western markets, it is not surprising that the two sides have divergent opinions on countertrade. The Eastern European countries are almost unanimously in favor of such deals, the inference being that they find countertrade mainly to their advantage. Western opinion of countertrade, however, has been mostly unfavorable. 2. Reasons why the Eastern European countries find countertrade attractive With few exceptions (e.g. Hungary), there has been no public discussion of the advantages and disadvantages of countertrade in the Eastern European countries. The ambiguity of the terms used, especially the confusion between industrial and commercial...
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...6. EXPORT OF INDUSTRIAL OBJECTIVES (PROJECTS) TOPIC 7. CONSULTING AND ENGINEERING ACTIVITY TOPIC 8. SHORT, MEDIUM AND LONG-TERM FINANCING TECHNIQUES TOPIC 9. SPECIAL FINANCING TECHNIQUES TOPIC 10. EUROMARKET FINANCING TECHNIQUES TOPIC 1. COMBINED COMMERCIAL OPERATIONS 1.1. Countertrade: genesis and determinant factors 1.2. Barter and offsets: specifics of carrying and contracting 1.3. Counter-purchase: participants and the mechanism of carrying. 1.4. Buy-back. 1.5. Re-export: reasons and the mechanism of carrying. 1.6. Re-import operation. Combined commercial operations – international affaires that combine elements of import, export, service rendering etc. in a single transactional mechanism, designed and applied by the foreign trade departments or firms specialized in this domain. Combined commercial operations - more complex character; - Increased transactional value; - more complex juridical basis - usually, they consist of two or more contracts signed, among which there is a certain link; - increased risk; - its realization requires an increased level of professionalism. Forms of combined commercial operations: I. Countertrade: Barter q Offsets (Compensations) Enlarged compensations Clearing...
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...Role of countertrade in the world market Noted US economist Paul Samuelson was skeptical about the viability of countertrade as a marketing tool, claiming that "Unless a hungry tailor happens to find an undraped farmer, who has both food and a desire for a pair of pants, neither can make a trade". (This is called "double coincidence of wants".) But this is arguably a too simplistic interpretation of how markets operate in the real world. In any real economy, bartering occurs all the time, even if it is not the main means to acquire goods and services. The volume of countertrade is growing. In 1972, it was estimated that countertrade was used by business and governments in 15 countries; in 1979, 27 countries; by the start of 1990s, around 100 countries. (Vertariu 1992). A large part of countertrade has involved sales of military equipment (weaponry, vehicles and installations). More than 80 countries nowadays regularly use or require countertrade exchanges. Officials of the General Agreement on Tariffs and Trade (GATT) organization claimed that countertrade accounts for around 5% of the world trade. The British Department of Trade and Industry has suggested 15%, while some scholars believe it to be closer to 30%, with east-west trade having been as high as 50% in some trading sectors of Eastern European and Third World Countries for some years. A consensus of expert opinions (Okaroafo, 1989) has put the percentage of the value of world trade volumes linked to countertrade transactions...
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...Import under Countertrade At times, standard goods-for-cash payment structures do not work, are cumbersome, expensive, or simply impossible. In these cases, companies can adopt countertrade. Countertrade involves the exchange of goods in barters or other ways in place of money. For example, if a nation’s currency is not exchangeable or no good overseas, they may offer a commodity or other product in place of cash. Countertrade was common in the USSR in the 1960s when its currency was nonconvertible. It was their only means of purchasing foreign goods. Countertrade grew in the 1980s as many other nations did not have the foreign reserves required to make imports. Countertrade increased yet again during the Asian financial crisis in 1997, as many currencies became devalued and had severely limited buying power. One example of countertrade was when the USSR paid Coca-Cola in vodka. Poland did the same with Coca-Cola but paid in beer. Countertrade can be separated into five variants: 1. Barter 2. Counter purchase 3. Offset 4. Buyback or compensation 5. Switch trading Barter is simply the direct trading of goods and or services between two parties with not monetary exchange. It is normally used in one-off deals with trading partners that are not trustworthy or that lack any credit. Barter is the simplest and most restrictive type of countertrade. Counter purchase is a mutual buying agreement which involves one party agreeing to buy a pre-specified amount of goods or services...
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...alliance in the telematics sector which essentially brings together two separate streams of technology related to information gathering and processing and also related to information transmission. 9. An example is IBM’s agreements with STET, Italy’s state owned Telecommunication Company and Nippon Telegraph and Telephone to develop computer communications services and a joint research venture with Ericson (Sweden) to explore the linking of data-management technology with digital switching technology. 10. It is also observed that within the service sector strategic alliances are less common, but those between hotels, airlines and tour operator’s and between accountants and management consultants are increasing. COUNTERTRADE: Countertrade is a form of international trade in which certain export...
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...Countertrade means exchanging goods or services which are paid for, in whole or part, with other goods or services, rather than with money. A monetary valuation can however be used in counter trade for accounting purposes. In dealings between sovereign states, the term bilateral trade is used. OR "Any transaction involving exchange of goods or service for something of equal value." Types of countertrade There are five main variants of countertrade: * Barter: Exchange of goods or services directly for other goods or services without the use of money as means of purchase or payment. * Switch trading: Practice in which one company sells to another its obligation to make a purchase in a given country. * Counter purchase: Sale of goods and services to one company in other country by a company that promises to make a future purchase of a specific product from the same company in that country. * Buyback: occurs when a firm builds a plant in a country - or supplies technology, equipment, training, or other services to the country and agrees to take a certain percentage of the plant's output as partial payment for the contract. * Offset: Agreement that a company will offset a hard - currency purchase of an unspecified product from that nation in the future. Agreement by one nation to buy a product from another, subject to the purchase of some or all of the components and raw materials from the buyer of the finished product, or the assembly of such product in the buyer...
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...countertrading C) exporting D) freight forwarding Answer: C Diff: 1 Skill: Concept Objective: 1 2) Small and medium-size enterprises, such as SpinCent as seen in the opening case for chapter 13, account for ________ of all U.S. exporters. A) 38% B) 54% C) 79% D) 97% Answer: D Diff: 1 Learning Outcome: Discuss the roles of exporting, importing, and countertrade in international business Skill: Concept Objective: 1 3) Which of the following best explains why SpinCent decided to export? A) growth opportunities in Asia B) labor demands in the U.S. C) declining tariffs in the EU D) promising market locations in South America Answer: A Diff: 2 Skill: Concept Objective: 1 4) Iverson Products is a U.S. firm that is considering expanding internationally by exporting. Which of the following is the LEAST likely benefit for Iverson? A) boosting marketplace flexibility B) improving economies of scale C) facing lower business risk compared to other foreign market entry options D) requiring fairly few resources Answer: B Diff: 2 Learning Outcome: Discuss the roles of exporting, importing, and countertrade in international business Skill: Application Objective: 1 5) Which of the following transactions refers to the purchase of goods or services produced by a company based in one country from sellers that reside in a different country? A) importing B) countertrading C) exporting D) freight forwarding Answer: A Diff: 1 Skill: Concept Objective:...
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