Countertrade

Countertrade

Countertrade

Countertrade is a trade between two countries by which goods are exchanged for other goods instead of hard currency. It can also be reported as an alternative means of structuring an international sale when conventional means of payment are hard, costly, or absent.

A single problem for countertrade is that its problems would interfere with the sales contract (i.e. the sale of company product, versus the countertrade transaction). The countertrade transaction is planned to support company sales contract, and yet could really end up interfering with your major sales contract (West, 2002, p.48-51).

The traditional technique of managing this risk is to ...