COUNTERTRADE &

BARTER

LALITHA. M
COUNTERTRADE
• Countertrade is a commercial transaction in which the sale of
goods or services is linked tot the purchase of other goods or
services, either as a form of payments or as a condition of
thee agreement.
• It often involves a reciprocal arrangement whare the parties
agree to buy goods or services from each other, helping to
balance trade between countries or parties with different
economic circumstances.
Countertrade Types
• Barter
• Counter purchase
• Offset
• Switch trading
• Buyback
• Compensation trade
 Access to new
market

ADVANTAGES
Competitive
OF Risk mitigation
advantage
COUNTERTRADE

Building
relationship
BARTER
• A barter transaction is the exchange of goods or
services, in exchange for other goods or services.
• Bartering benefits companies and countries that
see a mutual benefit in exchanging goods and
services rather the cash.
Barter example
• Imagine two farmers, one who grows apples and another who
raises chickens. The apple farmer needs some chickens for
his farm , and the chicken farmer wants some apples. So
they decide to exchange for apples and chickens.
• This is a simple example of a barter transaction, where goods
are exchanged directly without the use of money.
Barter Advantages
• No need for money
• Flexibility
• Potential cost savings
• Building relationship
• Environmental benefits
• Preservation of value
Disadvantages of barter
• Lack of divisibility
• Storage and transportation
• Limited Scope
• Difficulty in establishing value
• Complexity of trade