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