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Parallel Trade
It is a form of countertrade that involves the execution of 2 distinct and individually enforceable contracts: the first for the sale of goods by an exporter, the second for the purchase of the goods. Parallel trade agreements that involve cash transfers are also known as counter- purchases. Both contracts are needed for insurance, and much time credit, for each shipment.
SCL Limited a highly profitable company is engaged in the manufacture of power intensive products.
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