Classification of the Forms of countertrade Does the transaction involve reciprocal Straight Sales commitments(other than cash payments)? (cash or credit) Does the transaction extend Yes Does the transaction Barter involve the use of money? F No over long periods and No evolve a basket of goods? Counterpurchase, buyback or offset Yes Clearing Simple Arrangement Is the reciprocal Does the commitment limited to the N transaction involve Are third purchase of goods? debt? parties N involved? Ye Yes Counterpurchase and buyback SwapsOffsets Switch C learing Tradin Arrangements Are the goods taken back by Buyback the exporter the resultant output of the equipment sold? Counterpurchase Source: Adapted from Jean-Francois Hennart, "Some Empirical Dimensions Copyright@ 2001 by Harcourt, Inc. All rights reserved of Countertrade, "Joumal of International Business Studies 21(2)1990, 245. 22-6Copyright © 2001 by Harcourt, Inc. All rights reserved. 22-6 Classification of the Forms of Countertrade Does the transaction involve reciprocal commitments (other than cash payments)? Does the transaction involve the use of money? Does the transaction extend over long periods and involve a basket of goods? Are the goods taken back by the exporter the resultant output of the equipment sold? Is the reciprocal commitment limited to the purchase of goods? No Yes Straight Sales (cash or credit) Yes Counterpurchase, buyback or offset Counterpurchase and buyback Buyback Counterpurchase Yes Yes No No No No Yes Barter type Simple barter Clearing Arrangement Are third parties involved? Yes No Switch Trading Clearing Arrangements Does the transaction involve debt? Yes No Swaps Offsets Source: Adapted from Jean-François Hennart, “Some Empirical Dimensions of Countertrade,” Journal of International Business Studies 21 (2) 1990, 245