Leasing in International Markets. An important selling technique to alleviate high prices and cap ital shortages equipment is the leasing system. The concept ing is increasingly important as a means of selling capital equipment in overseas markets. is estimated that S50 billion worth(original cost) of U.S.-made and foreign-made equipment is on lease in Western Europe The system of leasing used by industrial exporters is similar to the typical lease con- tracts used in the United States, Terms of the leases usually run one to five years, with payments made monthly or annually: included in the rental fee are servicing. repairs. and spare parts. Just as contracts for domestic and overseas leasing arrangements are simi- lar, so are the basic motivations and the shortcomings. For example: Leasing opens the door to a large segment of nominally financed foreign firms that can be sold on a lease option but might be unable to buy for cash. Leasing can ease the problems of selling new. experimental equipment, because less risk is involved for the users. Leasing helps guarantee better maintenance and service on overseas equipment. Equipment leased and in use helps to sell other companies in that country. Lease revenue tends to be more stable over a period of time than direct sales would be.