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Counterpurchase Sales in the German Democratic Republic
Ist Teil von
Journal of world business : JWB, 1978-04, Vol.13 (1), p.82
Ort / Verlag
New York: Elsevier Science Ltd
Erscheinungsjahr
1978
Link zum Volltext
Quelle
Business Source Ultimate
Beschreibungen/Notizen
The German Democratic Republic is pushing Western countries to agree to counterpurchase agreements as a condition to doing business with them. Under countertrade, the Western nation must accept full or part payment from its Eastern trade partner in locally produced goods. Counterpurchase is the most popular form of countertrade in Eastern bloc countries like Bulgaria, Poland, Romania, etc. Two contracts are linked-one for the Western product's sale, the other for the Western nation to buy a certain percentage of Eastern products, usually 30-50% over a set time period. Among the goods being pushed are textile machinery, precision measuring devices, lab equipment, and electric components. Contracts are usually negotiated at the Leipzig Trade Fair. U.S. firms are generally unfamiliar with this form of trade, they often resist tying sales to buying customer goods, and they are unfamiliar with using European brokers to dispose of the counterpurchase. The U.S. government should assist them.