Question

Under this form of countertrade, a third party, usually a barter agent or some other type of broker, creates accounts that represent trade credits for the respective parties, and companies trade in and out as necessary.

Answer 1

Under this form of countertrade, a third party creates accounts that represent trade credits, allowing companies to trade in and out as necessary.

Step-by-step explanation:

This form of countertrade is known as a barter account system or trade credit system. In this system, a third party, such as a barter agent or broker, creates accounts that represent trade credits for the respective parties involved. These accounts allow companies to trade in and out as necessary.

With the barter account system, companies can exchange their goods or services for trade credits, which can then be used to acquire other goods or services from different companies within the system. It provides flexibility and allows for transactions to occur even when there is a lack of direct buyers or sellers for a specific item.

One example of a barter account system is the International Reciprocal Trade Association (IRTA)'s Universal Currency (UC) system. Through this system, businesses can trade their products or services with other members using UCs as a form of currency within the network.