y a purchase from within the target economy, an investment within the target economy, or some other form of reciprocal activity (Cateora and Hess, 1988).
A wide variety of terms are used to designate countertrade procedures and arrangements. In many instances, however, a term designating countertrade may not describe a separate form of the procedure. Rather, the term may actually describe a variation of one of the major forms of countertrade. Six major forms of countertrade are widely recognized barter, compensation (also known as clearing), buy back, offset, counterpurchase, and switch, and are described and explained in the following discussions.
There exists some disagreement as to whether barter is a form of countertrade, or whether the two practices are distinctively different (Cohen and Zysman, 1986). Most analysts, however, include barter under the generic term of countertrade (Banks, 1983; Welt, 1990).
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