Indirect exporting occurs when a company sells its products to intermediaries who then resell to buyers in a target market. Countertrade is another form of an international business transaction. Sometimes companies are unable to import merchandise in exchange for financial payment, so they exchange goods or services. Countertrade can provide access to markets that are otherwise off-limits because of a lack of hard currency. But at the same time, it can create problems because of price fluctuations in commodity products such as oil, wheat, and corn-products often involved in countertrade.
Companies also can engage in contractual entry modes.
Licensing is a contractual entry mode in which a company owning intangible property grants another firm the right to use that property for a specified period of time. Franchising is when a company supplies another with intangible property and other assistance over an extended period. Management contracts involve one company supplying another with managerial expertise for a specific period of time. Turnkey projects involve one company designing, constructing and testing a production facility for a client firm. Companies can also engage in investment entry modes.