Soviet Countertrade
Abstract
Western observers have noted the Soviet Union's use of countertrade over the past several years. This type of international trade involves a seller's agreement to make some form of reciprocal purchase from or investment in the buyer's country before the buyer agrees to make the initial purchase. After defining the terms often used in relation to countertrade, this paper develops the theory that would explain a government's use of this type of trade. The paper concludes with an application of the theory to the Soviet Union--an analysis of the motives behind the Soviet Union's use of countertrade-type transactions. Countertrade is defined as that set of bilateral international transactions which includes some element of reciprocity in which the seller compensates the buyer other than by price alone. Normally, the compensation is some form of reciprocal trade, commercial assistance, or investment, which benefits the buyer. (kr)
Document Details
- Document Type
- Technical Report
- Publication Date
- Sep 01, 1989
- Accession Number
- ADA214358
Entities
People
- Robert L. Waller
Organizations
- United States Air Force Academy