Research Reports from the Department of Operations
Document Type
Report
Publication Date
1-1-1988
Abstract
This paper discusses the various formats of Countertrade, a modern outgrowth of ancient Barter. It presents a taxonomy for classifying the ways Countertrade is conducted. It delineates the advantages to the trading partners depending on the respective levels of economic development in their home countries. It discusses the process of Countertrade broadly enough to encompass each of the Countertrade formats. It addresses issues of product bundling and develops quantity ranges within which a trade will be profitable to both sides, assuming that comparative advantage is enjoyed by the trading partners in their respective product lines. Lastly, the paper discusses some principles of setting a Corporate Countertrade policy. Although these issues are generic, the paper includes specific examples to illustrate Countertrade with the People's Republic of China.
Keywords
Operations research, Countertrade, Bundling (Marketing), International trade, United States--Foreign economic relations--China
Publication Title
Technical Memorandums from the Department of Operations, School of Management, Case Western Reserve University
Issue
Technical memorandum no. 615a
Rights
This work is in the public domain and may be freely downloaded for personal or academic use
Recommended Citation
Reisman, Arnold; Fuh, Duu-Cheng; and Li, Gang, "Achieving an Advantage with Countertrade" (1988). Research Reports from the Department of Operations. 2.
https://commons.case.edu/wsom-ops-reports/2
