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1 SEMESTER FALL 2013 MKT630 - International Marketing 2end GDB total marks 30 closing date Friday, January 11, 2013

Graded Discussion Board.02

International Marketing (Mkt630)

Topic: countertrade and its implications in international business

Marks: 30


Objective of the activity

The purpose of this activity is to introduce students with the concept of countertrade and its implication in international business.

Learning Outcomes


After attempting this activity students will learn:

  1. To comprehend the concept of countertrade
  2. Its uses in managing the balance of trade and balance of payment of a country.




Balance of trade and balance of payment are the critical measures for ensured economic expansion of a country. Thus, governments around the globe pay special attention in managing these balances in favorable position. One way to turn the balance of trade and balance of payment in favorable position is to manage the inflow and outflow of exports and imports of goods and services. Governments devise effectual strategies and policies to control the unnecessary inflow of imports and increase the exports. For such purposes counter trade is one of the most effective tools. In counter trade the two countries, on certain terms and conditions, exchange good and services with each other. Within counter trade, based on terms and conditions, the barter, compensation deal, counter purchase, advance purchase, buy-back agreements, offset agreement, clearing accounts and switch trading are different modes that can be adopted for managing the balance of trade and balance of payment in favorable position. Since long, Pakistan is facing unfavorable balance of trade and balance of payment.    


Point of discussion


Keeping in mind the above mentioned premise, generate the arguments for following question:


How the tactics of countertrade can turn the balance of trade and balance of payment of Pakistan into favorable position and in which sector the countertrade can be more beneficial for Pakistan.



Note: It’s a 30 marks activity so produce sufficient number of arguments to enrich your discussion.



For acquiring the relevant knowledge, do not rely only on handouts but watch the course video lectures and read additional material available online or in any other mode.

Important Instructions:

  • Your discussion must be based on logical facts.
  • The GDB will open and close at above specified date and time. Please note that no grace day or extra time will be given for posting comments on GDB.
  • Use the font style “Times New Roman” and font size “12”.
  • Your answer should be relevant to the topic i.e. clear and concise.
  • Do not copy or exchange your answer with other students. Two identical / copied comments will be marked Zero (0) and may damage your grade in the course.
  • Books, websites and other reading material may be consulted before posting your comments; but copying or reproducing the text from books, websites and other reading materials is strictly prohibited. Such comments will be marked as Zero (0) even if you provide references.
  • You should post your answer on the Graded Discussion Board (GDB), not on the Moderated Discussion Board (MDB). Both will run parallel to each other during the time specified above. Therefore, due care will be needed.
  • Obnoxious or ignoble answer should be strictly avoided.
  • You cannot participate in the discussion after the due date via email.
  • Questions / queries related to the content of the GDB, which may be posted by the students on MDB or via e-mail, will not be replied till the due date of GDB is over.
  • For planning your semester activities in an organized manner, you are advised to view schedule of upcoming Assignments, Quizzes and GDBs in the overview tab of the course website on VU-LMS.


Note related to load shedding: Please be proactive


Dear students!

As you know that Post Mid-Term semester activities have been started and load shedding problem is also prevailing in our country now a days. Keeping in view the fact, you all are advised to post your activities as early as possible without waiting for the due date. For your convenience; activity schedule has already been uploaded on VULMS for the current semester, therefore no excuse will be entertained after due date of assignments, quizzes or GDBs.

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