Archive for May 1991

Let’s not forget the Misery Index

Remember the “Misery Index”? The Misery Index is a good example of how the economy influences politicians. The Misery Index was used first by President Reagan in presidential election campaigns. It is equal to the sum of inflation and unemployment rates. Applied to presidential elections of the 1950’s, the index was under 6 and under…

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Pitfalls abound in Countertrade

Countertrade — barter, counterpurchase, buy-backs and offsets — is the fastest growing segment of international trade. But the rise of unconventional trade has many downsides, especially for small, and medium sized companies. Unconventional trade is often accompanied by an increasing role for government transactions. In fact, buy-backs New Economy and offsets are commonly imposed by…

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World Finds New Way To Do Business

The scramble for position and market share in the expanding global economy rewards new skills and requires unconventional strategies. One of the most important of these is countertrade. Countertrade is a response to two forces: hard currency shortages and a tendency for governments to use trade to help achieve broader economic development or industrial policy…

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Countertrade Cuts Cash Needs

Second of four parts Countertrade, the fastest growing segment of global commerce, includes barter, counter purchase, buy-backs and offsets. Barter is the simplest form of countertrade. Barter occurs when an exporter delivers a product or service and the importer pays with a product or service the exporter can use directly. Example: A U.S. oil company…

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