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Coproduction:
A type of buyback countertrade normally used for the transfer of management experience or technology. In cases where equity interests are a part of a coproduction arrangement, both companies profit from the sale of the services. Aside from the gains made from the direct sale of the product, each partner sees various other advantages. The host partner gains new technology and management expertise, and the outside partner acquire a straight investment in a foreign country without the risk of beginning a new business from scratch.
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