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Principles of Countertrade
Countertrade is a resourceful way to arrange for the sale of a product from an exporter to a company in a country that does not have the resources to pay for it in hard currency. Forms of countertrade range from simple barter, which is a direct exchange of goods or services of approximately equal value, to buybacks, where the exporter takes back output from the equipment he exported. "Countertrade can be used as an effective international business tool. Countertrade plays a part in 20-25 percent of world trade."(ExPA) I will examine the different types of countertrades and examine the pros and cons.
Barter - The simultaneous exchange of goods without money.
Counter purchase - Offsets the timing of a contract so that one transaction can go forward even though the second transaction requires more time. The participating parties sign two separate contracts that specify the goods and services to be exchanged. This type of countertrade is useful if delivery......

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Approximate Word Count: 457
Approximate Pages: 2 (250 words per double-spaced page)

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