Countertrade: Forms,motives, pitfalls,and negotiation requisites

The impressive growth in countertrade necessitates a careful look at this trade financing mechanism and a new attitude by American policy makers and businessmen toward it. This study looks at the various forms of countertrade, at the motivating forces behind it, at the pitfalls that countertrade could engender, and at some imperatives in the negotiation of countertrade deals. The issues are examined from the perspective of a policy maker and that of a businessman. The two perspective are distinct but overlap sufficiently to merit a joint examination. It is the conclusion of this study that countertrade is here to stay, and that American businessmen better learn to cope with it if they are to maintain and improve their competitiveness in the world markets.