DETERMINANTS OF LDC MANDATED COUNTERTRADE

The increased use of government imposed countertrade (mandated countertrade) by developing nations (LDCs) to meet their economic goals has been of particular concern to international executives. Frequently, countertrade can be mandated by LDCs on transactions even with their long‐time trading partners. Firms therefore need to anticipate actions of their LDC trading partners to be competitive in the global market place. Inadequate preparation can result in repercussions such as exclusion from specific deals, to exclusion from a particular country‐market.