The types of trade methods are as follows:

1. Licensing contract

Licensing contract means that the technology supplier of licensed trade pays compensation to the recipient of the permitted (licensed) technology. A licensing agreement signed with the other party for the use of its intellectual property or proprietary technology.

Depending on the degree of authorization, there are types such as exclusive license contracts, exclusive license contracts, general license contracts, transferable license contracts, and cross-license contracts. Depending on the subject matter of the contract, there are types such as patent licensing contracts, trademark licensing contracts, and proprietary technology licensing contracts.

2. Consulting contract

Technical services and consulting are also a commonly used method of technical trade in international technical trade practice. Due to their wide range of content, scope and form, the terms of their contracts The content is also different.

Extended information:

Characteristics of trade methods

The diversified operations of multinational companies are conducive to the development of compensation trade and the expansion of equipment and technology exports. Compensation trade is a kind of barter trade in which equipment technology and related products are exchanged. The supplier is responsible for both supplying the required equipment technology and selling related products as compensation. It would be difficult for a single equipment manufacturer to accept this barter approach.

With the rapid development of diversified operations of multinational companies, the forward economic integration of production enterprises has become increasingly complete. Having a wide range of sales agents at home and abroad or establishing its own sales company enables manufacturing enterprises to sell related resale products, thus using compensation trade as a means to expand the sale of capital goods and obtain double profits.

The further development of the world's division of labor and the in-depth expansion of industrial transfer are another promoting factors for compensation trade. The economies of some developing countries have made great progress, and the good investment environment has enabled developed countries to transfer some technology and capital-intensive industries to developing countries.

Although most of the industrial transfers are to occupy foreign markets, a considerable number of products are resold or used to assemble parts for complete machines. For the purpose of industrial transfer, equipment technology exporters mainly make profits from resale products, rather than mainly from exporting equipment technology.

The importer of equipment technology introduced more advanced equipment and technology through credit, established a production base, and exported the products at the same time, which formed another basis for the possibility of achieving compensation trade.

Baidu Encyclopedia-Trading Methods