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Glite Dictionary
compensation deal

compensation deal

5.5
An agreement to accept goods instead of money as payment for exports
  • noun
  • Specialized
translation icon : acuerdo de compensación
  • In a compensation deal, the exporter agreed to receive textiles instead of a cash payment.

Examples

  • The company finalized a compensation deal with the foreign government to exchange machinery for raw materials.

  • Many developing countries prefer a compensation deal when foreign currency is scarce.

  • The company signed a compensation deal with its suppliers.

  • Did they finalize the compensation deal yesterday?

  • In a compensation deal, the exporter agreed to receive textiles instead of a cash payment.

  • Many developing countries prefer a compensation deal when foreign currency is scarce.

  • The company finalized a compensation deal with the foreign government to exchange machinery for raw materials.

Surface Forms

compensation deal singular
compensation deals plural

Morphology

compensation + deal

A B1 learner who knows 'compensation' (payment for loss/services) and 'deal' (agreement) can readily infer this refers to an agreement involving payment or compensation. However, the specific trade nuance — that payment may be in goods rather than cash — is a specialized sense not fully predictable from the constituents, so the expression is only partially transparent.

Etymology

The noun compensation deal comes from a simple trade image: when a buyer cannot pay with money they give goods as compensation, and the deal is the agreement to accept those goods. So, compensation deal means agreeing to receive goods as payment 'instead of cash'.