Countertrade Payments made in the form of local products, not currency.
• Commonly used when there is inadequate access to needed foreign currency.
• Can provide opportunity to enter a new market with a heavy debt burden or unstable currency.
Contractual Agreements Often come after a company has some experience in international sales. Include franchising, foreign licensing, and subcontracting.
Franchising Contractual agreement in which a wholesaler or a retailer (the franchisee) gains the right to sell the franchisors’ products under that companies brand name in exchange for agreeing to related operating requirements.
• Foreign licensing agreement Firm has right to sell in specified geographic area
• Subcontracting Hiring local companies to produce, distribute, or
sell goods or services.