Question

What is counter trade and which party benefits most from
this activity?

Answer 1

Countertrade can be defined as the international trade in which goods or services are traded for goods and services, in whole or part, rather than with money.

The countre trade is most gainful to those countries which are producing goods and services are in large scale but they are unable to sell in their domestic countries, so they need to export of these goods to another countries. But it is not good for its trading countries because this country may dispose off the bad quality products to its trading countries. So it is beneficial to those trading countries which is able to sell off their unsold and unused lying goods in the country but they are able to sell due to counter trade.