Question

Why do you think entities resort to countertrade instead of buying/selling the traditional way by exchanging consideration such as money?

Answer 1

Countertrade can be seen as an alternative way of performing the different types of transactions or trade with each other . in this method the products and services are exchanged among the trade partners rather than using the elements such as currency to pay for the purchases. The main reason is that the trade partners may not be having enough resources in terms of money or the foreign currency to pay for the services and goods needed by them. This type of transaction is commonly used by the developing countries which have limited foreign currency or credit facility.