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Countertrade: Another Horizon for Purchasing
Author(s) -
Norquist Warren E.
Publication year - 1987
Publication title -
journal of purchasing and materials management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 3.75
H-Index - 92
eISSN - 1745-493X
pISSN - 0094-8594
DOI - 10.1111/j.1745-493x.1987.tb00179.x
Subject(s) - purchasing , business , commerce , payment , database transaction , variety (cybernetics) , marketing , industrial organization , finance , computer science , artificial intelligence , programming language
“Countertrade” is a term that refers to any transaction in which payment is made at least partially with goods rather than money. Countertrade “deals” can be mundane or unusual–Japanese cows exchanged for Chinese hogs, or Swedish entertainers exchanging a concert tour for Polish coal. An increasing number of countries now demand countertrade as part of the requirement for doing business. With the number and the variety of countertrade deals growing, purchasing departments are becoming important players in this new international business game. Purchasing expertise frequently is required, along with marketing expertise, in putting together a profitable countertrade package for the American firm.