Question

How might a company make strategic use of countertrade schemes as a marketing weapon to generate export revenues? What are the risks associated with pursuing such a strategy?

Answer 1

Answer:-

At the point when customary methods for installment are troublesome, exorbitant, or nonexistent then Countertrade is an elective methods for organizing a global deal.

Creating nations now and then demand a specific measure of countertrade. On the off chance that a firm is reluctant to enter a countertrade understanding, it might lose a fare chance to a contender that is eager to settle on a countertrade understanding.

Organizations that are eager to engage countertrade as a methods for financing will have a preferred position over those organizations that lean toward customary types of financing.

Firms taking part in countertrade must be eager to put resources into an in-house exchanging office committed to organizing and overseeing countertrade bargains, and should know about the nature of the items got in countertrade bargains.

Risks Associated with counter exchange :

Danger of removal

Offer of merchandise at not exactly full worth

Removal of imports may require assets other than those that the firm has

It might include the trading of unusable or low quality merchandise that the firm can't discard productively

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