Marketing rationale for countertrade

Abstract

The article discusses marketing justifications for international countertrade, and also offers some explanations for the recent upsurge in countertrade (CT). The author supports the theory that the market for international marketing expertise is imperfect, and the imbalance of international marketing know-how can be used to advantage by two or more parties through a CT arrangement. For an inexperienced trader, CT can be shown to be a relatively cheaper way of entering and establishing a position in new markets. Co-operation in setting up CTs can also bring benefit to the second (or more than two) partner(s) as well.