Buy-Back

Summary of Buy-Back

An arrangement in which the seller of capital equipment agrees either to accept a certain portion of the output of his customer as payment (in part or in full) for the original equipment, or to buy a certain portion of that output, as a condition of the sale. See Countertrade.

(Main Author: William J. Miller)

Buy-back (compensation) in International Trade

Meaning of Buy-back (compensation), according to the Dictionary of International Trade (Global Negotiator): A form of countertrade whereby exporter of heavy equipment, technology or even entire manufacturing facilities agree to purchase a certain percentage of the output of the new facility once it is in production. Also called compensation trade. See countertrade.