Final answer:
Over 40% of international trade agreements include countertrade provisions that involve bartering goods or services rather than using currency. This method aids countries with constraints on foreign exchange to continue trading, but it complicates future contracting for perishable goods.
Step-by-step explanation:
An estimated 40 percent or more of all international trade agreements contain countertrade provisions, which involve bartering for other products instead of for currency. The proliferation of these agreements reflects the complexity and interconnectivity of the global economy. Countertrade allows countries to engage in international trade when currency exchange is difficult due to lack of foreign exchange reserves or other currency restrictions.
International trade agreements and bartering systems can be a useful way to continue trade amidst financial difficulties. For instance, a country that may have an abundant supply of a particular commodity but scarce foreign reserves can still engage in trade by directly exchanging goods or services for other desired goods or services.
However, while countertrade can facilitate trade in certain situations, it does have limitations. Unlike with currency transactions, barter does not easily allow for future contracts, especially when dealing with perishable goods, as reflected in the scenario where a farmer is looking to barter fresh strawberries for a tractor in the distant future.