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International Marketing Management

PART-A COUNTER TRADE

INTRODUCTION
This essay will briefly analyse the main concepts and theories on pricing methods as well as countertrade on an International marketing scope for an organisation; looking at how price arrangements can affect a particular market going into a overseas market; we also taking into consideration other factors that appears to be relevant to the concept above which includes cultural differences, country's political regime as well as main aspects which are mostly related to inflation, taxation and currencies fluctuation impacting the International marketing strategies.
Therefore if we look at the counter-trade concept used by firms and compare to the conventional pricing arrangements we can draw a discussion which will be explained through this coursework by comparing few models and using companies that are Internationally recognised in order to attempt explaining the disadvantages on countertrade;

COUNTER-TRADE DEFINITION
The concept of counter-trade can be defined as a recently important development of trade in which part of the transaction of exchanging good and services might not involve any sum of money. What can be called as a barter which therefore can be explained as the direct transaction without any parts being paid for it. According to (EIU, 1984) an important factor to be considered in Counter-trade is the fact that not matter what transaction has taken place they tend to consider the currency exchange to be balanced.
(Grimwade N, 2004)
Counter-trade can benefit both parts but is necessary to remember that sometimes can be a quite complex to be used as a form of pricing for International markets;
According to Ghaury & Cateora 2000; counter-trade knowledge is essential for International pricing strategy as well as for the staff to be aware and to be trained in order to understand the difference of types of transactions that might occur within an organisation.
The economic relationship within...