Meaning of compensation trade | Babel Free

Definitions

A form of countertrade in which an investor is paid back by a share of the proceeds or results generated by the goods and services that the investor provided.

uncountable

Examples

“Among the most important of these were export processing and compensation trade⟳.”

“But in the case of one category of investment, direct⟳ compensation trade⟳ (p. 137), the investment takes the form⟳ of productive capital, i.e. machinery and equipment.”

“Incentives for using compensation trade⟳ include⟳ tax advantages, flexibility in structuring the agreement, and no involvement for the foreign party in labour issues.”

“Why did E-S Pacific choose⟳ the joint-venture formula over compensation trade⟳?”

CEFR level