Traditional or simple barter where goods are exchanged by mutual agreement, and no money or credit is involved, is in decline. Today most CT transactions are more complex and sophisticated.
Ormita can manage the most complex types of barter and counter-trade between governments and large corporations. Some of our methodologies are listed below:
| Barter |
The direct exchange of goods or services of approximately equal value.
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Not used very often because difficult to find goods of equal value.
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| Swap / Parallel Barter | Both parties sign two separate contracts that specify the goods and services to be exchanged between them at different times.
| Assessing value and disposing of goods is also a problem. |
| Counter-purchase |
Seller gets paid but agrees to purchase goods worth the same amount from the buyer. |
This form of counter-trade provides the participants more flexibility in selecting goods and in assessing value.
In this way one transaction can go forward even though the second transaction needs time.
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| Buy-back
or Compensation |
One party agrees to supply technology or equipment that enables the other party to produce goods.
Seller agrees to accept as payment a portion of the output or buy it back.
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Technology transfer, quality assurance, and assured payment.
Usually utilized in developing or newly-industrialized nations.
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| Offset |
Offset arrangements are designed to offset the negative effects of large purchases from abroad on the current account of a country. Ex: a country buying an airplane may demand that parts and components be acquired in the local economy. |
Used frequently by countries to ensure stable currency flow and employment.
Allows countries and organizations to offset the negative impact of large purchases on balance of payments.
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