Currently, foreign firms can participate in Russian market in a number of ways.
These include direct sales, trade through agents, production cooperation, the signing of licensing
agreements, the creation of joint ventures.
Direct Sales.
The most common means of doing business with Russia is through straight sales of foreign goods in
exchange for foreign currency or Russian produced commodities (countertrade).
In a countertrade transaction the Seller agrees to take full or partial payment in goods.
Countertrade covers barter, counterpurchase, buyback.
A barter deal involves an exchange of goods to an equal value. As a rule, little or no currency is involved.
Counterpurchase refers to short and medium-term transactions. The Western Seller commits himself to
purchase an agreed value of the Buyers products to help finance the original sale. The counterpurchase element of
a contract may be about 10 per cent of the total contract value.
Buyback refers to long-term contracts and is connected with the development projects supported with huge
credits. Buyback involves two phases, one for the delivery of equipment to the Buyer and a second for the delivery
of the end product to the Seller.
Foreign Economic Restructuring has affected the conduct of foreign trade, the banking system and the role
of the Russian enterprise in the economy
The main points of the foreign trade reform are:
- enterprises now have the right to conduct foreign trade;
- industrial enterprises;
- greater emphasis is made on exports and word marketing technique;
- inward investment by means of joint ventures is encouraged.
Найти в тексте производные от следующих слов:
to purchase
to agree
a party
long
to develop