Introduction To Trade Marketing: Types And Practices Of Counter Trade

P > barter trade is an ancient way of trade.

It refers to simple exchange of goods, not to pay in monetary terms, nor to the third party.

The basic practice is to sign a barter contract between the two parties, stipulate the goods and time exchanged between the two sides.

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< p > < strong > barter trade < /strong > /p >

< p > each party is the exporter of its own export goods and the importer of the other party's exports.

The goods exchanged between the two parties may be the exchange of single goods, or the comprehensive barter of various goods or the so-called package barter. The basic principle is that the goods exchanged must be equivalent.

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< p > barter trade is characterized by the fact that it is a one-off paction. Only two parties to the importer and exporter do not relate to the other third parties. The two sides sign only one import and export contract, including the goods exchanged between the two parties. The goods exchanged between the two parties should be clearly stated in the contract < /p >.

The practice of barter trade is that the two sides sign a contract to exchange their goods and deliver the goods to the other party in accordance with the contract stipulations. P

The delivery time of each delivery can be both at the same time and after delivery.

The above practice is an old trade method.

Now barter trade has been changed to payment through payment, clearing method to achieve the purpose of goods exchange.

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< p > in the payment and settlement of payments, Bibi can balance or settle regularly and balance comprehensively. It can be either cash or bookkeeping. In time, it can be imported and exported at the same time.

In short, barter trade is becoming more flexible.

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< p > the so-called Bibi balance of payment means that the two sides adopt the letter of credit method, and the letters of credit opened are mutually beneficial. The amount of the letter of credit is equal or roughly equal.

Since the opening time is first and later, but in order to guarantee the other party's obligation to fulfill the purchase, the other party's stipulate the balance in the first letter of credit.

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< p > refers to the obligation of the two parties to purchase the other party's equivalent goods according to the contract stipulations. The two banks will set up accounts for each other's account. After the goods are exported, they will be charged by the bank and offset each other. If there is a balance or deficit, they will still be offset or paid in cash.

However, barter trade is very inconvenient and has certain limitations.

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< p > for example, most of the products exported from western capitalist countries are privately owned, and they are highly specialized. The goods we provide are not necessarily goods that they match, and it is more difficult to conclude pactions.

Now our trade with the former Soviet Union and Eastern European countries can be adopted in this way to solve the problem of foreign exchange shortage.

However, we must pay attention to the way of bookkeeping. When our goods first export or happen to be adverse, the other party's goods will not be supplied at a time, or if they are not needed, they will cause foreign exchange backlog and suffer economic losses (< /p >).

< p > < strong > buy back trade < /strong > /p >

< p > buy back trade means that the exporter agrees to purchase the products manufactured by the machine equipment supplied by the importer from the importing party.

It has a lot in common with the compensation trade, but the difference between the two is mainly that the products purchased by the exporters are only limited to the products produced by export machinery and equipment.

The value of its repurchase product may be the total value of the export machinery and equipment, or it may be partial value, or even exceed the total value of its export.

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< p > buy back trade was first produced in the energy and raw materials sector of the production technology and equipment pactions.

All countries in Eastern Europe import technology and equipment from the western capitalist countries. They do not pay the spot currency first, and the products produced by these technologies and equipment are reimburse for each other's prices, and they are paid in installments.

Later, with the expansion of this form of trade, some machine manufacturing industry and other aspects also adopted this way.

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< p > but gradually changed the original concept of repurchase trade, especially in terms of repurchase products, great changes have taken place, from the original direct product reimbursement to other products (indirect products) or part of the direct products and some indirect products.

Because of the change in the practice of repurchase trade, there is no difference between compensation trade and actual business.

Some people think it is a form of compensation trade.

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< p > < strong > mutual purchase trade < /strong > /p >

< p > mutual purchase trade, also called reciprocal trade (Reciprocal) and parallel trade (ParallelTrade), means one side of the export, the importing party undertaking the purchase of products equal to the value of its export value.

That is to say, the two sides sign two independent and related contracts: one is the one that the importing party buys the other's goods with the current remittance, the other is the first party who promises to purchase the goods of the other party within a certain period.

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The difference between the practice of "P >" mutual purchase "and" compensation trade "is that both pactions are made in cash, usually by sight L / C or at sight, and sometimes by L / C.

Therefore, unless the first export party accepts a long-term L / C, there will be no problem of advance payment. On the contrary, it can also use the other party's funds during the period when the export payment is received to pay the return payment.

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In this way, equipment is provided by the developed countries in general. This is not only for the importing countries, but also for the first part of the capital, so that the risk of exchange rate changes must be borne. The only desirable place to drive the export of domestic goods is p.

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< p > < strong > turnover trade < /strong > /p >

< p > changing trade means that western capitalist countries export machinery and equipment to all countries in Eastern Europe, and make use of the US dollar clearing account which is specialized in changing trade intermediaries and third world countries and Eastern European countries to make foreign exchange, so that trade between western export enterprises and Eastern European countries can be balanced. Trade is a relatively extensive trade way.

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< p > the specific practice is that western export enterprises first export machinery and equipment or other goods to a certain country in Eastern Europe, and the western export enterprises obtain the rights of liquidated accounts, then pfer this interest to the intermediaries specializing in changing trade, and intermediaries buy goods from the third world countries instead of paying foreign exchange.

It is settled by a bilateral agreement between a country in Eastern Europe and the third world countries.

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< p > middlemen sell the exported goods to other buyers and get the cash in exchange. They will pay the Western importers after deducting the commission from the foreign exchange, and then complete the turnover trade < /p >

< p > trade in hand can be seen from its practice that the third world countries can only export on the basis of bilateral trade accounts with a certain country in Eastern Europe. The goods exported by the third world countries are sold by middlemen to other markets for cash, but they can not get the slightest hard currency for the third world countries, but may also affect their normal export to other markets and international market prices due to the low price resale of the other countries.

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< p > therefore, many Third World countries are not interested in such turnover trade. This is also the main reason for the significant reduction in trade in recent years.

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