Question

Please provide an example of a company that uses (or has used) countertrade and explain.

Answer 1

An example of counter trade in which companies exchanged goods and services instead of paying currency is Bharat Heavy Electricals Limited (BHEL). It is the largest power generation equipment producer in India. The company entered into a JV with mineral-trading company, MMTC Ltd., to import palm $1 billion worth of palm oil to India from Malaysia. It did so in return of setting up a hydel power plant in Malaysia, which is second largest producer of palm oil in world.