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Also the firm can largely ignore the costs of currency conversion as well as the movement of currency exchange rates. Furthermore, the firm can charge full price (or even more than that) because it gains leverage when goods are exchanged for other goods.
The benefits derived from countertrade also lead to problems. First, countertrade is a cumbersome and complex process, and all parties must consider the additional risk, time, effort, and costs involved. Second, the additional expenses inevitably and ultimately reduce the parties' profits. Third, the products involved may not be internationally competitive in terms of pricing and quality...
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