The extent FTSE100 companies are using countertrade strategically as method of internationalisation

The aim of this research project is to investigate how the UK�������¢��â����â�¬��â����â�¢s biggest companies in certain sectors and industries are using countertrade techniques, as a method of internationalisation. The research uses a case study approach, to enable an in-depth understanding of the current attitudes towards and uses of countertrade. Six companies are studied in detail, representing the defence & aerospace, natural resources, engineering and industrial sectors. The research found such companies rarely use that countertrade, neither as a feature of their normal trading practice nor as a means of internationalisation. The primary reasons for the avoidance of countertrade are the new paradigm of business ethics, the increased visibility of market prices in the internet age and the complexity of arranging deals. Exceptions are firms which supply Governments, especially the defence & aerospace sector. The size and political importance of deals is driving the use of offset, where the value of the primary contract is balanced, either directly or indirectly, by other forms of inward investment managed by the supplier. The pressure on firms to meet offset obligations is driving them to seek more imaginative ways to involve their supply chains and create offset opportunities which also help the strategic aims of the companies themselves. This aspect of countertrade, driven by national Governments, is been used as a method of planned internationalisation, despite the trend to the contrary elsewhere