Countertrade success was found to be higher for large firms that were experienced in exporting and in countertrade operations, could accommodate countertrade takebacks and valued vertical integration, exported high value, high visibility, complex products, had a low reputation for quality and had excess capacity. Success was also higher if the importer valued quality, had low technical proficiency, was inexperienced in exporting, faced barriers in export markets, had a high cost of forward contracts, foreign exchange constraints, and faced a disequilibrium exchange rate.
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*Donald J. Lecraw is Professor of International Trade and Economics at the Centre for International Business Studies, School of Business Administration, The University of Western Ontario. His areas of research concern international trade, industrial organization, and the MNE as it relates to the developing countries of Asia. Professor Lecraw was on leave in Jakarta in 1988 where he developed case material for the MBA Program at Institut Pengembangan Manajemen Indonesia.
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Lecraw, D. The Management of Countertrade: Factors Influencing Success. J Int Bus Stud 20, 41–59 (1989). https://doi.org/10.1057/palgrave.jibs.8490350