Page 15 - Countertrade
P. 15

Buy Back



               Buy-back occurs when an importing country pays for plant and
               equipment, (often in the form of a turnkey factory, or supplies
               technology, equipment, training, or other services,) with products
               produced from the plant. The supplier of the plant agrees to accept a
               percentage of the output from these as part payment for the contract.










                                                   Buyback

                                                Plant, machinery, equipment,


                                                      technology etc.





                                                       Payment in Cash
                   Seller                                                                Buyer




                                              % Payment in goods produced by
                                                        this plant
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