Despite political and economic reforms in the Easternbloc and in many developing countries, countertrade promisesto be a significant tool for consummation international transactions. It is unlikely that these countries will find all the foreign exchange they need to finance their restructuring programs. Thus, international managers need to develop acountertrade plan within their overall international marketingplan. A method to identify and take advantage of countertrade opportunities also needs to be developed.
There are many facts to establish a countertrade strategy. One of the perplexing problems is that countertradetakes on so many forms. Despite the potential confusion,the clear evidence that countertrade arrangements aregrowing means that they can be more innovative. Managerscan develop new types of countertrade arrangements to fitthe particular deal being negotiated. Any previously developed typology should not constrain the executor of countertrade.
Firms have a considerable choice of countertrade intermediaries including specialized countertrading companies,switch traders, or barter merchants. Specialized countertrading companies can put together countertrade transactions for their clients and use the leverage of a trading company for clients. Switch traders facilitate countertrade transactions by identifying and bringing parties together. Bartermerchants buy goods from corporations for trade creditsrather than cash. An information system that gathers datapertinent to countertrade transactions is necessary for firmsthat are active countertrader. It is necessary to know whichfirms or countries have goods to sell or buy. Also, the motives and policies of countertrade participants need to becontinuously monitored.
Countertraders need to consider the product, promotion, pricing, and distribution tactics necessary to supportthe deal. For instance, what level of product quality is acceptable to the firm?
A firm that believes countertrade is an opportunity toIncrease profits or obtain astronomical returns on investmentmay be disappointed. Countertrade deals are difficult tomeasure using traditional indicators of success for two reasons. First, countertrade typically involves a long timeframe and, therefore, does not lend itself to typical yearlydeterminations of performance. Second, countertrade transactions can strain company resources, tremendous negotiations and cost can be involved in switching products, transportation, and storage of products, not to mention the possibility of unsold goods.