Government Mandated-Countertrade in Australia: Some International Marketing Implications

Abstract

Government mandated-countertrade (G M-C) is practised in Australia as offsets policy. Its objectives and implementation have been refined over recent years to recognise the inefficiency of conventional arm’s length exchange for the international transfer of technologies, skills and capabilities. Earlier formulations of offsets policy in Australia sought increased workload for local industry, whereas recent policy innovations focus on the use of beaucratic governance, created and enforced by government, to effect these transfers. Recent innovations to Australian G M-C are outlined and some marketing implications for foreign firms seeking to do business with the Australian government are presented.