Question

Countertrade is a form of trade whereby a company sells a product to a buyer and agrees to accept, in return for payment, products from the buyer's firm or from the trade agency/institution of the buyer.

Answer 1

Countertrade is a form of trade where a company sells a product to a buyer and agrees to accept, in return for payment, products from the buyer's firm or from the trade agency or institution of the buyer.

Step-by-step explanation:

Countertrade is a form of trade where a company sells a product to a buyer and agrees to accept, in return for payment, products from the buyer's firm or from the trade agency or institution of the buyer.

It is a method of international trade that involves exchanging goods or services instead of using money as a medium of exchange. With countertrade, companies can overcome barriers such as lack of currency or access to capital.

For example, if Company A in the United States sells products to Company B in China, Company B can agree to pay Company A by providing products that it produces, instead of using money.

This allows both companies to benefit from the trade, even if they don't have the necessary currency or resources to make the payment in cash. Countertrade can include various types of transactions, such as barter, offset, and buyback agreements.