Counter trade and international outsourcing : a relationship and network perspective

This paper looks at the reduction in the focus on countertrade in academic literature and the media and finds that the causes of countertrade continue to exist. It considers alternative activities that appear to have replaced countertrade such as international outsourcing and conclude that these address the same underlying issues as countertrade but reflect the changes in the international business environment over the last decade. The connection between countertrade and international outsourcing is that both are forms of linked internationalisation based on reciprocity, mutual dependency and long term relationships. The paper concludes that the network paradigm offers the best explanation for linked forms of internationalisation including both countertrade and international outsourcing.