Examples of Barter Trades
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The document provides examples of recent cross-border barter trades conducted between December 2010 and January 2011. It describes several companies that took advertising or services and repaid in goods, with the added benefit of accessing new markets. Statistics are given on the prevalence of barter trade among Fortune 500 companies and other organizations. Some customers and government programs assisted by Ormita, a barter trade company, are listed.
![Some Little-Known Statistics www.ormita.com.au Approximately 70% of all Fortune 500 companies engage in barter [1] . Eight out of ten corporations engage in barter [2] . Approximately 65% of all New York Stock Exchange-listed companies engage in barter trade [3] . The SWISS Wir alone does 2.5 billion Swiss Francs (over $2 billion US dollars) and boasts 80,000 members nationally [4] . The WIR also enjoys a membership base of nearly 20% of all Swiss businesses in a country of only 7 million people [5] . At its peak in 2001-2002, an estimated 6 to 10 million Argentines participated in the Red Global de Trueque barter system, including doctors, manufacturers, and even railways, turning over approximately 6 billion US dollars per annum in transactions and accounted for approximately 15% of Argentinas mean personal income [6] . Approximately 400,000 businesses engage in formalised barter in the United States [7] . In North America 80,000 small businesses used barter for the first time in 2007 and over 800,000 American companies bartered at least once. [8] Barter accounted for 31% of export operations from the Ukraine in last year with highly liquid goods accounting for between 60 and 70% of all goods exported by barter [9] . Companies that actively barter can do as much as 5-10% of their business annually through trades. [10] [1] Schmidgall, R.S., Damitio, J.W. (1999)., Bartering activities of the Fortune 500 and hospitality lodging firms., Michigan State University, International Journal of Hospitality Management [2] American Association of Advertising Agencies. (2003). [3] (2004)., Annual Report, National Association of Trade Exchanges [4] Lietaer, B & Belgin, S. (2004)., Of Human Wealth: Beyond Greed & Scarcity. Galley Edition. [5] Valentini, E. (2003)., Switzerlands WIR System and Barter Worldwide, International Trade Currency System [6] Stodder, J. (2007).,Residual Barter Networks and Macro-Economic Stability. Rensselaer Polytechnic Institute at Hartford, Hartford CT. [7] (2004)., Fact Sheet, International Reciprocal Trade Association. [8] Frisk, S., (2007). The American Economics Association [9] Kuchma, L., (1998). Press Release. Embassy of the Ukraine to the United States of America. (14 Oct). [10] Schact, J. (2004)., "The Business of Bartering", Illinois Meetings & Events (Fall Edition).](https://image.slidesharecdn.com/ormitatrades-110123153805-phpapp01/85/Examples-of-Barter-Trades-4-320.jpg)
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Examples of Barter Trades
- 1. Examples of Recent Trades
- 2. Some Examples of Recent Cross-Border Trades Dec 2010 Jan 2011 www.ormita.com.au Kairali Resorts ( www.kairli.com ) Took: $43,198 USD of advertising Repays in: Hotel rooms, entertainment Hidden Benefits: Rooms sold to new customers only who may come back and buy with cash. Hertz Rentals ( www.hertz.com ) Took: $274,150 USD of advertising Repays in: End-of-life ex-rental cars Hidden Benefits: Rental cards disposed of without warehousing, auction and other costs and at a higher margin than with outright cash sale. Nokia Electronics ( www.nokia.com ) Took: $89,715 USD of printing and packaging Repays in: Incorrectly packaged models / overstock models Hidden Benefits: Models sold outside of their market only; thereby creating a new market for them who may buy with cash.
- 3. Some Examples of Recent Cross-Border Trades (cont) Dec 2010 Jan 2011 www.ormita.com.au 4. BlueScope Steel ( www.bluescopesteel.com.au ) Took: $25,000 AUD of hotel vouchers Repays in: Surplus steel items Hidden Benefit: Surplus only allowed to be sold to non-BlueScope customers, thereby taking customers away from their competitors. Galena Cellars Winery ( www.gelenacellars.com ) Took: $35,000 USD of expo space Repays in: Wine Hidden Benefit: Sold offshore to new markets only which had never experienced Galena Wines and for higher than local market value. M.A.C. Cosmetics ( www.maccosmetics.com ) Took: 68,175 of advertising Repays in: Remnants / end-of-stock-lots of product Hidden Benefit: Sold offshore to new markets only and for full retail value.
- 4. Some Little-Known Statistics www.ormita.com.au Approximately 70% of all Fortune 500 companies engage in barter [1] . Eight out of ten corporations engage in barter [2] . Approximately 65% of all New York Stock Exchange-listed companies engage in barter trade [3] . The SWISS Wir alone does 2.5 billion Swiss Francs (over $2 billion US dollars) and boasts 80,000 members nationally [4] . The WIR also enjoys a membership base of nearly 20% of all Swiss businesses in a country of only 7 million people [5] . At its peak in 2001-2002, an estimated 6 to 10 million Argentines participated in the Red Global de Trueque barter system, including doctors, manufacturers, and even railways, turning over approximately 6 billion US dollars per annum in transactions and accounted for approximately 15% of Argentinas mean personal income [6] . Approximately 400,000 businesses engage in formalised barter in the United States [7] . In North America 80,000 small businesses used barter for the first time in 2007 and over 800,000 American companies bartered at least once. [8] Barter accounted for 31% of export operations from the Ukraine in last year with highly liquid goods accounting for between 60 and 70% of all goods exported by barter [9] . Companies that actively barter can do as much as 5-10% of their business annually through trades. [10] [1] Schmidgall, R.S., Damitio, J.W. (1999)., Bartering activities of the Fortune 500 and hospitality lodging firms., Michigan State University, International Journal of Hospitality Management [2] American Association of Advertising Agencies. (2003). [3] (2004)., Annual Report, National Association of Trade Exchanges [4] Lietaer, B & Belgin, S. (2004)., Of Human Wealth: Beyond Greed & Scarcity. Galley Edition. [5] Valentini, E. (2003)., Switzerlands WIR System and Barter Worldwide, International Trade Currency System [6] Stodder, J. (2007).,Residual Barter Networks and Macro-Economic Stability. Rensselaer Polytechnic Institute at Hartford, Hartford CT. [7] (2004)., Fact Sheet, International Reciprocal Trade Association. [8] Frisk, S., (2007). The American Economics Association [9] Kuchma, L., (1998). Press Release. Embassy of the Ukraine to the United States of America. (14 Oct). [10] Schact, J. (2004)., "The Business of Bartering", Illinois Meetings & Events (Fall Edition).
- 5. Some of Our Customers
- 6. www.ormita.com.au Some Customers You May Recognise
- 7. www.ormita.com.au Some Customers You May Recognise
- 8. www.ormita.com.au Some of our Larger Radio Brands
- 9. www.ormita.com.au Some of our Larger TV Brands
- 10. Some of Our Larger Publications www.ormita.com.au
- 11. Examples of Ormita Assistance to Governments
- 12. www.ormita.com.au Bosnia-Herzegovina Barter Debt Settlement Program (Together with the Bosnia-Herzegovina National Credit Bureau) $1,715,856,000 USD
- 13. www.ormita.com.au Cape Verde Community Currency Micro-Lending Programme $17,856,000 USD
- 14. www.ormita.com.au Maldives & Seychelles 2004 Boxing Day Tsunami Restoration $250,000 NZD Once-Off
- 15. www.ormita.com.au South Africa SANE Network Joseph Edozien
- 16. www.ormita.com.au Turkey Corporate Counter-Trades Ongoing
- 17. www.ormita.com.au European Union Letter from the European Union Commission regarding the freedom to clear goods and services providing the recognition that barter credits are not a security.