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Benefits of countertrade for companies

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Reference no: EM133165224

A multinational food and beverage company headquartered in the USA decides to engage in countertrade with a large Mexican alcoholic beverage company. The Mexican company will provide alcoholic beverages in exchange for the USA company's beverages as well an investment by the USA company in a new manufacturing facility; this facility will be used by the Mexican company but owned by the USA company.

  1. What are the benefits of countertrade for each of these companies?
  2. What are the risks associated with pursuing such a strategy?
  3. Would you recommend these companies engage in this countertrade? Explain

Reference no: EM133165224

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