convertible currency

compensation agreement

Barter endured for thousands of years as the primary means of trade. Colonial powers forced bilateral barter upon their client states,making the colonies take expensive manufactured goods in return for bargain-price raw materials,and prohibiting them from trading with other nations. International trade was supposed to be freed from bartering's constraints in July 1944,when diplomats and economists attended the United Nations Monetary and Financial Conference at Bretton Woods,New Hampshire.

Nations with serious debt problems, such as Mexico, Brazil and Argentina, have been compelled to devote almost all their export earnings to debt service, leaving themselves with virtually no surplus to pay for imports. With barter, however, debtor nations can continue to import goods while,in effect, concealing export earnings from creditors. But countertrade is not the exclusive province of debtor nations. Says Yoffie, "Even countries with strong foreign exchange positions, such as Australia, Canada and Indonesia, are insisting on countertrade in certain areas. Linking imports and exports is a way to exert power over multinational corporations. Countries that lack expertise in international marketing try to use countertrade as leverage to tap the networks of global firms." What are the advantage and disadvantage of barter?

Nations with serious debt problems, such as Mexico, Brazil and Argentina, have been compelled to devote almost all their export earnings to debt service, leaving themselves with virtually no surplus to pay for imports. With barter, however, debtor nations can continue to import goods while,in effect, concealing export earnings from creditors. But countertrade is not the exclusive province of debtor nations. Says Yoffie, "Even countries with strong foreign exchange positions, such as Australia, Canada and Indonesia, are insisting on countertrade in certain areas. Linking imports and exports is a way to exert power over multinational corporations. Countries that lack expertise in international marketing try to use countertrade as leverage to tap the networks of global firms." What does "global firms" refer to?

Nations with serious debt problems, such as Mexico, Brazil and Argentina, have been compelled to devote almost all their export earnings to debt service, leaving themselves with virtually no surplus to pay for imports. With barter, however, debtor nations can continue to import goods while,in effect, concealing export earnings from creditors. But countertrade is not the exclusive province of debtor nations. Says Yoffie, "Even countries with strong foreign exchange positions, such as Australia, Canada and Indonesia, are insisting on countertrade in certain areas. Linking imports and exports is a way to exert power over multinational corporations. Countries that lack expertise in international marketing try to use countertrade as leverage to tap the networks of global firms." Why do countries with strong foreign exchange position need countertrade?

(In this sense, South Korea is treading a path not taken by Japan. While Japanese interests span the globe, few foreign firms have successfully penetrated Japan’s home turf. Korea, too, has a legacy of xenophobia; and the Koreans are clearly wary of opening their markets to high-powered Western competitors. But they are tentatively doing just that, so far with a momentum unmatched by Japan. The aim is to defuse the protectionist pressures that have hobbled U. S. -Japanese trade relations and, in time, to enter the ranks of the world’s developed nations. That’s no small order, but the Koreans think it can be filled fairly simply. At bottom, says Nam Due Woo, chairman of the Korea Traders Association, South Korea needs only “some degree of sweat and some degree of technological sophistication.” And that’s precisely what has already lifted Korea, Inc. into contention.)What does the writer mean by the word “sweat”?

(In this sense, South Korea is treading a path not taken by Japan. While Japanese interests span the globe, few foreign firms have successfully penetrated Japan’s home turf. Korea, too, has a legacy of xenophobia; and the Koreans are clearly wary of opening their markets to high-powered Western competitors. But they are tentatively doing just that, so far with a momentum unmatched by Japan. The aim is to defuse the protectionist pressures that have hobbled U. S. -Japanese trade relations and, in time, to enter the ranks of the world’s developed nations. That’s no small order, but the Koreans think it can be filled fairly simply. At bottom, says Nam Due Woo, chairman of the Korea Traders Association, South Korea needs only “some degree of sweat and some degree of technological sophistication.” And that’s precisely what has already lifted Korea, Inc. into contention.)What does “technological sophistication” refer to here?

(In this sense, South Korea is treading a path not taken by Japan. While Japanese interests span the globe, few foreign firms have successfully penetrated Japan’s home turf. Korea, too, has a legacy of xenophobia; and the Koreans are clearly wary of opening their markets to high-powered Western competitors. But they are tentatively doing just that, so far with a momentum unmatched by Japan. The aim is to defuse the protectionist pressures that have hobbled U. S. -Japanese trade relations and, in time, to enter the ranks of the world’s developed nations. That’s no small order, but the Koreans think it can be filled fairly simply. At bottom, says Nam Due Woo, chairman of the Korea Traders Association, South Korea needs only “some degree of sweat and some degree of technological sophistication.” And that’s precisely what has already lifted Korea, Inc. into contention.) Can you explain “. . . lifted Korea, Inc. into contention”?

The battle to unseat smaller brands,dominate niches,and shove competing products out of distribution will be costly and exhausting,and could go on for years.( )