ABSTRACT
This chapter introduces the basic concepts, typology and terminology used in offsets practice. Buyers and sellers often define offsets terminologies differently. Trade associations linked to offsets like Global Offsets and Countertrade Association (GOCA) and European Club for Countertrade and Offsets (ECCO) have attempted to create some form of uniformity in offsets terminology, though each offsets policy document may vary in its definition, typology and terminology of offsets. Though the rationale and analysis may vary, the thrusts of these concepts are similar in application. The chapter discusses key aspects of offsets management that could be used as guidance by offsets practitioners and academics. It investigates the evolution, historical development and analysis as to what drives offsets. The chapter discusses various forms of Nonconventional International Trade Financing (NITF) practice. Considering the dynamic nature of NITF, the author has created a model that explains offsets within alternative trade financing. The chapter explains the various forms of industrial collaboration in the context of offsets.
