Eliminated On Trade Trends And Motivation Analysis

Countertrade has grown into a phenomenon too important to be ignored by business practitioners, researchers, and governments. At present, not only developing and centrally planned economies but also developed ones involve in countertrade transactions. More than 100 countries and regions have adopted various forms of countertrade. So it is necessary to analyze the development of countertrade practices.This paper first introduces the concept and basic characteristics of countertrade. The most common forms of countertrade are also discussed: barter, clearing agreement, switch trade, counterpurchase, buyback and offset. Secondly, in order to get a whole picture of current countertrade practice, data of countertrade practices in terms of country group, size, type and product countertraded, are content analyzed. Furthermore, countertrade is examined from two levels: micro (firm) and macro (country) in terms of its motivations. Lastly, this paper analyzes the current countertrade development in China and gives some suggestions on countertrade development of our country.