Research Reports from the Department of Operations

Document Type

Report

Publication Date

1-1-1987

Abstract

Countertrade is a modern version of barter trading. In the People's Republic of China (PRC), the Compensation Trade Bureau of the State Import and Export Commission (SIEC) has stated that countertrade is "indispensable" as a tool of economic planning. Although it is the oldest form of commerce, countertrading research appears to be virgin territory in the literature of Management Science. This paper identifies PRC's need for countertrade in the current stage of its economic development. It classifies countertrade according to some basic factors and represents the different types of countertrade by mathematical equations. Lastly the paper analyses several pricing strategies based on shared economies among the parties engaging in countertrade to guide the trading so as to enable everyone involved to gain profit.

Keywords

Operations research, Countertrade, Barter, China--Commerce, International trade, Economic policy--China, Trade regulation--China, Management science

Publication Title

Technical Memorandums from the Department of Operations, School of Management, Case Western Reserve University

Issue

Technical memorandum no. 614

Rights

This work is in the public domain and may be freely downloaded for personal or academic use

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