What Are The Functions Of Compensation Trade?

The introduction of equipment technology through compensation trade can solve the problem of lack of funds for equipment renewal and technological pformation, so that products can be upgraded to enhance market competitiveness (including international market and domestic market).

The importer of equipment technology sells products back, while compensating for the technical cost of the equipment, it also makes use of the sales channels of the equipment exporters in foreign countries, so that the products can enter the foreign market and import the equipment and technology to drive the export of the products.

The equipment technology introduced by compensation trade is not very advanced or even used equipment.

But if the products can be sold and sold, and the market prospects are good and the equipment prices are reasonable, it will be beneficial for developing countries to increase their exports, expand domestic employment opportunities and raise the level of regional economic development.

The role of compensation trade in technology exporters

On the basis of providing credit, exporters expand the export of equipment and technology.

In order to pfer the industry needs, the exporters can pfer the industry to the developing countries through the compensation trade. They not only get the price of the pfer of equipment and technology, but also get profits from the sale of the resold goods.