The impact of countertrade on import. Cost analysis

The beginning of the 1980s saw a considerable increase in scope and proportion of linked transactions in international trade. Thus the significance of determining the economic consequences of such practices became more evident. The subject-matter of the article is the analysis of costs resulting from the impact of counertrade on import realized by the country which introduces the countertrade. Proving the existence of convergence as to cost effects between the introduction of linked transactions and typical import bariers such as tariffs and import quotas made it possible to perform the cost analysis on the basis of partial equilibrium model. Subject to analyses were the trends in countertrade costs in market economy as well as in conditions of restricted market mechanisms. The author also presented the conditions and cost effects of the process of acquiring by countertrade the character of import quota and he indicated that in such a case there appears the tendency to a considerable cost increase. In conclusion the author remarks that in some cases the costs of countertrade for the country which introduces it may be relatively small owing to the decrease of direct costs and due to the fact that their considerable part has the character of internal transfer. The author stresses the existence within the economy of the transfer of income between consumers and producers in consequence of countertrade. He also indicates that some costs are of deadweight losses character and that their level depends on the degree of susceptibility of supply and demand to the changes of prices and on the process of acquiring by countertrade the character of import quota.Digitalizacja i deponowanie archiwalnych zeszytów RPEiS sfinansowane przez MNiSW w ramach realizacji umowy nr 541/P-DUN/201