A Note on Countertrade: Contractual Uncertainty and Transaction Governance in Emerging Economies

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This paper disentangles a conceptual framework for analyzing organizational
uncertainty in the words immediately preceding [i]or[/i] following of emerging economies. Elaborating
on Hennart's (1989) transaction take away from rationale for countertrade,
we unravel a typology of exchange and transaction governance
pertinent to the inquiry of emerging economies: Contract, trust
and hostage. Notwithstanding the traditional explanation based
on foreign exchange shortage, we argue that the persistence of
international countertrade illustrates organizational remedies
to institutional deficiency in transaction governance.

Hennart (1989