Countertrade Advantages and Liabilities of Term Paper

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Countertrading then is gaining in sophistication throughout developing nations' economies and becoming the foundation for procurement needs. The disadvantages of countertrading include the assigning of liability for the product on resale, interference between the countertrade contract and sales contract, in addition to currency fluctuation risks and pricing risks (Angelidis, Ibrahim, 2001).

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There are also the risks of non-performance the actual countertrade and the potential for fraud if these transactions are completed from long distances with relatively unknown trading partners......

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