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This paper presents the results of a study designed to gather empirical data about countertrade activity by US firms. The focus of the study was to determine the number of firms engaging in countertrade, their general characteristics, their motivations for countertrading, and their expected future level of involvement in 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.

Countertrade is a widely used and important means for financing business transactions. Participation involves some serious risks and care should be taken in the selection of countertrade goods, partners and institutions. Forms of countertrade, its benefits to companies and countries, its disadvantages, and guidelines for countertrades are described. Using prudence and sound decision criteria practitioners may gain considerable benefits from this mode of trading.

While conjecture surrounds attitudes toward countertrade, there are few studies reporting on empirical inquiries. Attitudes to and perceptions of various dimensions of countertrade are reported for Australian firms and some comparisons are drawn from similar studies conducted in the UK and Canada. Generally, attitudes toward countertrade of those Australian managers who were surveyed, which include both countertraders and non‐countertraders, are positive. This is the first empirical study of international countertrade of its type conducted in Australia. It follows in the tradition of studies conducted in the UK and Canada and it broadens international understanding of this form of exchange, which has long been practised in Europe, but not in Australia.

Recession and competitive pressure in the global arena, allied to the emergence of large, long‐term potential markets, have intensified both the incentives and the opportunities for countertrade. Examines findings on the generic countertrade approaches of major British companies and analyses attitudes concerning proactivity towards countertrade. Unexpectedly, finds that proactivity varies inversely with the value of individual one‐off contracts and directly with the degree of repeat business. Explores the merits of a proactive approach to countertrade, contingent on business environment dynamics and reflecting organizational competences.

Countertrade is a widely prevalent mode of trading among Eastern bloc nations. Countries and companies which wish to export to them can gain a strong competitive edge by incorporating a willingness to countertrade into their product offering. This article reports findings regarding the perceptions of benefits and problems held by British executives whose companies do practice countertrading with Eastern bloc customers. It also sheds some light on why the incidence of East‐West countertrade appears to be inaeasing.

As the use of countertrade increases and countertrade research proliferates, it is necessary to integrate the knowledge to document what has been done and identify gaps for future research. Proposes Bagozzi′s exchange framework as a model for integrating research and identifying situational contingencies, characteristics of social actors and third parties, and social influence between actors as the determinants of exchange. Managerial implications are also identified.

This article addresses the question of how firms interested in identifying and exploiting business opportunities in less developed countries (LDCs) can use countertrade exchange mechanisms to accomplish their objectives. Key dimensions of this issue are illuminated using a business development model. To highlight critical interactions between countertrading and the business analysis model, the case of Nigeria (an African economy bedeviled by economic problems and external debts) is examined. Several issues suggested by the case analysis are generalised into “do′s and don′ts” for prospective LDC countertraders. The article concludes with predictions, regarding the type of countertrade most likely to be utilised by LDCs and identification of several LDC countertrade‐related issues on which additional research would be useful.

Countertrade has grown into a phenomenon too important to be ignored by business practitioners, researchers, and governments. In particular, as a growing number of countries in Eastern Europe open their markets to international trade, business firms can realize a great number of opportunities. Yet there is a dearth of empirical research on countertrade arrangements with this region of the world. The present study investigates this issue. Specifically, it examines the benefits and pitfalls of countertrade between U.S. companies and Eastern Europe and compares them with those of similar arrangements with other parts of the world. Some explanations as well as implications and limited generalizations are developed.

The Asia‐Pacific region, one of the world's fastest growing markets is experiencing wide and growing use of countertrade. This paper explores some of the factors leading to increased use of countertrade deals in the Asia‐Pacific market. Recent examples of countertrade transactions in the region are reviewed and the implications for management are explored.