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
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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
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STRATEGIES 6 2.0 EXPORTING 6 2.1 Advantages and Disadvantages of Exporting 7 2.2 Passive exports Vs Aggressive exports 7 2.3 Direct and Indirect Export 8 2.4 Case Study 9 3.0 PIGGYBANKING…………………………………………………………………………………….10 4.0COUNTERTRADE……………………………………………………………………………………10 4.1 Forms of Countertrade…………………………………………………………………………….10 4.2 Examples of Countertrade…………………………………………………………………………11 4.3 Disadvantages of Countertrade……………………………………………………………………11 5.0
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open to it. These options vary with cost, risk and the degree of control which can be exercised over them. The simplest form of entry strategy is exporting using either a direct or indirect method such as an agent, in the case of the former, or countertrade, in the case of the latter. More complex forms include truly global operations which may involve joint ventures, or export processing zones. Having decided on the form of export strategy, decisions have to be made on the specific channels. Many
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percentages. Brazil’s population is not as large but does has a high GDP percentage, and also a high Dollar Pre Capital GDP. 2. Why do companies tend to thrive in global markets when their country of origin enjoys a comparative advantage in their industry? When their country of origin has naturally cheap raw materials or if their currency has been undervalued, they are naturally cheaper than their competitors from other countries. This gives them better margins and they thrive
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(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
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Market consumption capacity 5. Commercial infrastructure 6. Economic freedom 7. Market receptivity 8. Country risk 2. define ethnocentric stuffing and identify their advantage and disadvantages Adv: * re-creating local operations * consistent value sharing * managers company loyalty disadvantages: * higher costs for relocation * barriers to management in the local offices 3. as developing pricing strategies, list the main factors which affects pricing decisions
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Internalisation Theory This theory tries to explain the growth of transnational companies & their motivations for achieving FDI. There are two major determinats of FDI ( Hymer, 1976)--- * One was removal of competiton * The another was the advantages which some firms possess in a
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strategies for international purchasing 7 Element 2 – Implement international purchasing strategies 10 Element 3 – Undertake more complex international purchasing 12 Element 4 – Determine payment strategies 15 Element 5 – Arrange barter and countertrade 18 Element 6 – Determine logistics strategies 20 Element 7 – Evaluate international purchasing strategies and implement identified improvements 22 Portfolio Activities Semester 2, 2013 24 Introduction Continued pressure to reduce costs
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programs to help finance exports, including export credit insurance and specialized banks such as the Export-Import Bank of the United States. Next, we compare the various types of short-term receivables financing and then the use of forfaiting and countertrade for longer term transactions. The mini-case at the end of the chapter, “Crosswell International’s Precious Ultra-Thin Diapers,” illustrates how an export requires the integration of management, marketing, and finance. 21 CHAPTER Eiteman-2
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