Aspy P. Palia

Worldwide network of countertrade services

Abstract This paper presents an analysis of the global countertrade service industry that has emerged in recent years to cater to the needs of international marketing managers. Faced with an increasing number of countertrade demands, marketing managers are required to accept a wide range of commodities in payment for the goods they sell. Lacking the expertise to market these countertraded commodities, marketing managers seek the assistance of countertrade service organizations. These organizations provide a variety of services and specialize by product category and by geographic region served. Based on 1988 data, this analysis focuses on the services offered, products handled, regions covered, and clients served by these firms. Ninety-three organizations providing countertrade services make up the countertrade service industry. These organizations have 93 headquarters and 22 branch offices located in 62 cities situated in 27 countries. They offer four categories of services, handle six categories of products, cover eight regions of the world, and service 13 categories of clients.

Recent trends in Australian countertrade: A cross-national analysis

This paper presents and analyses data on recent trends in both voluntary and government-mandated countertrade in Australia. The analysis reveals that compensation is the most frequently used form of countertrade. The USSR and the PRC are the major nations involved. The primary category of Australian imports are capital goods. Inputs and capital goods are the major categories of Australian exports. Both Australian imports and exports are primarily finished products. Aerospace products, computer software systems, and hardware components are the major categories of civil offsets. The aerospace and weapons-related industries are the major categories of defence offsets. A familiarity with recent trends in Australian reciprocal trade will enable international marketing managers to identify and take advantage of emerging opportunities in the Australian marketplace.

Countertrade practices in Japan

Abstract This article investigates countertrade transactions in Japan. An analysis of 104 reported countertrade transactions revealed that compensation was the most frequently used form of countertrade. The former Soviet Union, the Peoples Republic of China, Indonesia, India, Turkey, and the United States were the major trading partners. The data on countertrade were compiled from Countertrade Outlook (weekly) and Financial Times (daily), two major sources of information on global countertrade transactions. The various forms of countertrade covered in this study are explained and illustraded with recently reported Japanese countertrade transactions. Current data on countertrade transactions with Japan for 1987, 1988, and the first half of 1989 were then analyzed. The analysis covered the frequency and relative importance of the countries involved, forms of countertrade used, and types of products imported and exported by Japan consistent with earlier studies on countertrade [1–4]. A familiarity with recent trends in Japanese countertrade enable international marketing managers to identify, and to take advantage of, emerging opportunities in the Japanese marketplace.

Survey of countertrade practices in Australia

This empirical exploratory study is part of a larger comprehensive study of countertrade practices in the Asia-Pacific region. A mail survey of 600 Australian international trading firms reveals that a positive attitude toward countertrade exists among both countertraders and non-countertraders in Australia. Further the study reveals the major motivating factors, the benefits derived difficulties faced and reasons for not countertrading by Australian firms. In addition, the study identifies the forms of countertrade used, the countries sewed, and the product and service categories countertraded. The results are compared to earlier studies of UK and Canadian firms, and the implications for international marketing managers are discussed

Countertrade practices in China

Abstract This article investigates countertrade transactions in China since the beginning of 1988. An analysis of 80 reported countertrade transactions reveals that compensation is the most frequently used form of countertrade. The United States accounts for 26 of the 80 countertrade transactions (32.5 percent). Other major players in the Chinese countertrade arena include the USSR, UK, France, Japan, West Germany, and Australia. The Chinese use countertrade to import capital goods and finished products. They export finished consumer products and semifinished goods to developed nations, and inputs and semifinished goods to developing countries.

Australian perceptions and experiences of international countertrade with some international comparisons

While conjecture surrounds attitudes toward countertrade, there are few studies reporting on empirical inquiries. Attitudes to and perceptions of various dimensions of countertrade are reported for Australian firms and some comparisons are drawn from similar studies conducted in the UK and Canada. Generally, attitudes toward countertrade of those Australian managers who were surveyed, which include both countertraders and non‐countertraders, are positive. This is the first empirical study of international countertrade of its type conducted in Australia. It follows in the tradition of studies conducted in the UK and Canada and it broadens international understanding of this form of exchange, which has long been practised in Europe, but not in Australia.

Countertrade practices in Indonesia

Abstract This articles investigates countertrade transactions in Indonesia. An analysis of 31 reported countertrade transactions reveals that compensation, counterpurchase, and offset are the more frequently used forms of countertrade. Japan, Iran, Algeria, Pakistan, and the United States are the major trading partners. The primary categories of Indonesian exports and imports are raw material inputs and finished capital goods, respectively. A familiarity with recent trends in Indonesian countertrade will enable international marketing managers to identify and take advantage of emerging opportunities in the Indonesian marketplace.

Changing multinational corporation — nation state relationship: The case of IBM in India

During 1977, IBM was asked to withdraw from India due to its unwillingnesss to comply with the Foreign Exchange Regulation Act (FERA) of 1973. However, with (1) the signing of Memorandum of Understanding between the U.S. and India, (2) the easing of trade restrictions by the Government of India against foreign firms, (3) the declining value of the U.S. dollar, (4) the slump in the U.S. computer market, (5) the rapid growth in the Indian computer market, and (6) changes in other environmental factors, IBM again began actively seeking and securing new business. By the mid-1980s, IBM had secured a number of large contracts and was on the verge of re-entry into the burgeoning Indian computer market.The purpose of this study is to examine the underlying factors that influence both the divorce and reunification between host country government and the multinational corporation. The study, conducted through personal interviews with chief executives of IBM, government officials, and other knowledgeable persons, examines the social-political aspects of the FERA and its implications for multinationals in India and elsewhere in developing countries.

Countertrade practices in Korea

Abstract This article investigates countertrade transactions in Korea. An analysis of 34 reported South Korea countertrade transactions revealed that barter and offset are the most frequently used form of countertrade. The United States, Columbia, and the former Soviet Union were the major trading partners. An analysis of seven reported North Korean countertrade transactions revealed that South Korea was the major trading partner. The data on countertrade were compiled from Countertrade Outlook (weekly) and Financial Times (daily), two major sources of information on global countertrade transactions. The various forms of countertrade covered in this study are explained and illustrated with recently reported Korean countertrade transactions. Current data on countertrade transactions with Korea for 1988 and the first half of 1989 were analyzed. The analysis covered the frequency and relative importance of the countries involved, forms of countertrade used, and types of products imported and exported by Korea consistent with earlier studies on countertrade [22–25, 32].