Antonio Jhone
7 posts
Aug 28, 2020
5:51 AM
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What Is Countertrade?
Countertrade is a reciprocal form of international trade in which goods or services are exchanged for other goods or services rather than for hard currency. This type of international trade is more common in developing countries with limited foreign exchange or credit facilities. Countertrade can be classified into three broad categories: barter, counter purchase, and offset.
Countertrade Explained
In any form, Countertrade gives a mechanism for countries with limited access to liquid price range to exchange goods and services with other international locations. Countertrade is part of an overall import and export strategy that ensures a country with limited domestic resources has access to needed items and raw materials. Additionally, it provides the exporting nation with an opportunity to offer goods and services in a larger international market, promoting growth within its industries.
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