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Any of the numerous different agreements that business parties negotiate to exchange goods for goods, typically with nations that have limited foreign exchange, are referred to as countertrade.
In a reciprocal form of international trade known as countertrade, products or services are traded for other products or services rather than for hard currency. International trade of this kind is more prevalent in countertrade developing nations with scarce credit or foreign exchange goods resources. Barter, counter purchase, and offset are the three broad classifications for countertrade.
Countertrade in any form gives countries with little access to liquid funds a way to exchange goods and services with other countries. Countertrade is a component of a comprehensive import and export countertrade strategy that makes sure a nation with few domestic resources has access to the goods and raw materials it needs. It also goods gives the exporting country the chance to tap into a bigger global market for its products and services.
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