Share
Explore BrainMass

strategic use of counter trade schemes as a marketing weapon to generate export revenue

How might a company make strategic use of countertrade schemes as a marketing weapon to generate export revenue?

Is Starbucks coffee addicted in other countries just like in the US? Do other countries children drink Starbucks coffee like the US children. What age do they start drinking coffee overseas?

Solution Preview

Many companies in today's marketplace lose part of their competitive advantages due to the difficulties of exporting and international business. One of the main impediments to exporting for a lot of companies is their inability to deal with foreign companies that may not have sufficient resources to pay for products or services. This is particularly true regarding hard currency, which many developing counties only have a very limited reserve. As a result, there ends up significant delays and problems in international transactions. Countertrade is a concept that companies can use to help increase their presence in international markets. It is usually composed of five different types: barter, counter purchase, offset, switch trading, and buybacks (Paul, 2008). Each one of those types of countertrades formulates a specific guideline or rules for business activity. Used strategically, they can increase export revenue for a company. To help illustrate this better, let's consider an example of a company ...

Solution Summary

The expert determines how a company makes strategic use of counter trade schemes as a marketing weapon to generate export revenues.

$2.19