Combining Import Deals with Export Activities

Abstract

The aim of this paper is neither to condemn nor to defend certain practices in international economic relations, including relations along the East-West line, which may come under the very loose heading of combining import and export interests. This paper examines in some detail the essence of the most proliferating of these practices — often presented as forms of “countertrade” — and tries to clarify some reasons for their origin and their effects. All this is done from the point of view of a socialist country with planned external economic relations and foreign trade. By clarifying certain obscure points about “countertrade” — often regarded as a mysterious phenomenon — we hope to help a little to remove certain misunderstandings arising from controversial approaches towards commercial deals based on the combination of import and export interests.