Research Reports from the Department of Operations
Document Type
Dissertation
Publication Date
8-1-1987
Abstract
Countertrade is a modern version of barter trading. This thesis provides a texonomy for the various formats of countertrade in practice today. Each of the formats classified is also mathematically modeled. Under the thoery of comparative advantage this thesis derives quantity ranges within which negotiations can take place and both sides will profit. The thesis proves that product bundling increases negotiating latitute. The thesis also is concerned with deviations from comparative advantage. The situations of absolute comparative advantage and of comparative disadvantage are introduced to calculate quantity ranges using various types of product bundling. The extent of government subvention and/or tariff necessary for countertrade to be possible is discussed by comparing these quantity ranges with the ones derived under comparative advantage assumptions.
Keywords
Operations research, Countertrade, Barter, Comparative advantage (International trade), Negotiation--Economic aspects, International trade--Mathematical models
Publication Title
Dissertation, Department of Operations, School of Management, Case Western Reserve University
Issue
Technical memorandum no. 626 ; Submitted in partial fulfillment of the requirements for the Degree of Doctor of Philosophy.
Rights
This work is in the public domain and may be freely downloaded for personal or academic use
Recommended Citation
Fuh, Duu-Cheng, "Ranges for Negotiation in International Countertrade" (1987). Research Reports from the Department of Operations. 469.
https://commons.case.edu/wsom-ops-reports/469
