Countertrade

Countertrade

 

 

Countertrade

 

Meaning of Countertrade

Countertrade: a more sophisticated and sometimes highly complex form of barter trade. For example, a country may export coal and accept mining equipment in payment. No money changes hands in this transaction. The buyer of the coal then seeks to place it in a third market in exchange for payment or some other product. Goods to be traded in this way are usually valued in a third-country currency, e.g. Swiss Francs, for accounting purposes. Countertrade is an inefficient way to trade, but it has sometimes been attractive to countries experiencing severe foreign exchange shortages. See also compensation trade.

 

Source: http://ctrc.sice.oas.org/trc/WTO/Documents/Dictionary%20of%20trade%20%20policy%20terms.pdf

Web site to visit: http://ctrc.sice.oas.org

Author of the text: W. Goode

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Countertrade

 

Countertrade

 

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Countertrade

 

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Countertrade