Word.ws English Dictionary

compensation trade

compensation trade noun: a form of countertrade in which an investor is paid back by a share of the proceeds or results generated by the goods and services that the investor provided.

Noun

compensation trade (uncountable)

  1. A form of countertrade in which an investor is paid back by a share of the proceeds or results generated by the goods and services that the investor provided.
    • Among the most important of these were export processing and compensation trade.1993, Nicholas R. Lardy, Foreign Trade and Economic Reform in China, →ISBN, page 41
    • But in the case of one category of investment, direct compensation trade (p. 137), the investment takes the form of productive capital, i.e. machinery and equipment.1997, François Soulard, The Restructuring of Hong Kong Industries and the Urbanization of Zhujiang Delta, 1979-1989, →ISBN

Examples of compensation trade in a sentence

  • Incentives for using compensation trade include tax advantages, flexibility in structuring the agreement, and no involvement for the foreign party in labour issues.2006, Jonathan Reuvid, Li Yong, Doing Business with China, →ISBN, page 140:
  • Why did E-S Pacific choose the joint-venture formula over compensation trade?2014, Rosalie L. Tung, U.S.-China Trade Negotiations, →ISBN:

Questions about compensation trade

What does compensation trade mean?
Compensation trade means a form of countertrade in which an investor is paid back by a share of the proceeds or results generated by the goods and services that the investor provided.
How do you use compensation trade in a sentence?
Incentives for using compensation trade include tax advantages, flexibility in structuring the agreement, and no involvement for the foreign party in labour issues.
What part of speech is compensation trade?
Compensation trade is a noun.

Words near compensation trade in the dictionary

  1. compensation culture
  2. compensation cultures
  3. compensation neurosis
  4. compensation pendulum
  5. compensation pendulums
  6. compensation trade
  7. compensational
  8. compensationary
  9. compensations
  10. compensative
  11. compensatively

Source and license

Adapted from Wiktionary: compensation trade (page history and authors). Text available under the Creative Commons Attribution-ShareAlike 4.0 license. Word.ws reformatted the entry and added links. Wiktionary data of 2026-09-02.

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