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"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 depends on a future event, like a harvest...
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