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Old 12-18-2007, 11:14 PM
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Default I'll trade you my Pepsi for your vodka and submarines

From the Mod 2 readings, "Financial Economics With Applications to Investments, Insurance and Pensions" editor Panjer.
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...in 1991, Pepsico bartered Pepsi Cola for vodka and obsolete Russian submarines.
seriously?
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Old 12-18-2007, 11:15 PM
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huh...well, here's a little more explanation http://www.witiger.com/international...untertrade.htm
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Pepsi & Vodka
The countertrade arrangement where the rights to sell Russian vodka in the US in exchange for Pepsi (to be sold in Russia) was a huge story years ago John G. Swanhaus, Jr., vice president, Pepsi Cola Company
As president of PepsiCo Wines & Spirits International, a major part of his responsibility was PepsiCo's supply to the U.S. market of Stolichnaya Russian Vodka as part of a countertrade agreement to sell Pepsi products in the Soviet Union.
Pepsi & Vodka -how did it work,
Pepsi-Cola delivers syrup that is paid for with Stolichnaya Vodka. Pepsi has the marketing rights of all Stolichnaya Vodka in the U.S.
Recently Pepsi has made another innovative step by taking 17 submarines, a cruiser, a frigate, and a destroyer in payment for Pepsi products. In turn, this rag tag fleet of 20 naval vessels will be sold for scrap steel, thereby paying for Pepsi products being moved to the Soviet Union.
explained at http://www.barternews.com/approach_marketing.htm
That's wicked cool.

Sorry to have taken up your time. I just had to post that.
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Old 12-18-2007, 11:16 PM
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http://www.everything2.com/index.pl?node_id=1245019
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Essentially, countertrade is barter writ large.
Companies that do business with other companies in countries that are cash poor or have restrictions on capital flows sometimes get paid by barter. Pepsi might export 1 million cases of Mountain Dew in exchange for 1 million cases of Stolichnaya Vodka, a visit to a strip club, and a player to be named later...well maybe not all that other stuff, but at least the vodka. Frighteningly enough, recently Pepsi accepted 17 submarines, a cruiser, a frigate, and a destroyer in payment for Pepsi products. Pepsi plans to either sell this flotilla for scrap steel or invade Atlanta, Georgia in order to finish off Coca Cola once and for all.
A very popular indirect strategy for market entry, countertrade may account for up to 20-30% of world trade. In countries in which currency repatriation is difficult or impossible, countertrade may be the only way to profitably enter the market. Also, it can be used to compensate or give incentives to companies investing in a new market as well. Countertrade, despite difficulties involved in setting prices, inconsistencies in products, and the difficulty of converting to traditional currency trading, is expected to continue to grow, especially in developing countries.
:ctm:
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Old 12-18-2007, 11:19 PM
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Originally Posted by 1695814 View Post
Recently Pepsi has made another innovative step by taking 17 submarines, a cruiser, a frigate, and a destroyer in payment for Pepsi products. In turn, this rag tag fleet of 20 naval vessels will be sold for scrap steel
Scrapping their destroyers in the middle of the Cola Wars? I think Pepsi really blew this one.
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Old 12-19-2007, 07:33 AM
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I think this may be more commonplace in other parts of the world. I've a friend that has an electronics firm that sells worldwide. He's had some Mexicans offer to pay him in 'luxury automobiles'.
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Old 12-19-2007, 09:20 AM
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invade Atlanta, Georgia in order to finish off Coca Cola once and for all.
First they lose Vick, next they will lose their prized export..... What a great plan by pepsi...
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