What do you understand by counter trade? Mention few circumstances where counter trade can be beneficial for a country?
Answers
Countertrade is a system of international trading that helps governments reduce imbalances in trade between them and other countries. It involves the direct or indirect exchange of goods for other goods instead of currency.
(or)
Countertrade is a form of reciprocal trade in between countries wherein the goods and services are exchanged for other goods and services instead of currency.
This kind of international trade is very useful for lesser-developed countries which have limited foreign exchange facilities.
It is also beneficial when a country does not have any cash to give and the value of the asset can be compensated with other own assets. Also, it provides trade mechanisms for countries which do not have cash funds and can exchange resources with other nations instead.
Countertrade also provides an exporting nation which offers goods and services into a larger international market, which is useful to promote growth within the industry.
Countertrade is a kind of counter-purchase agreement in which orders can be won while in times of intense competition.
Hope my answer helps you.
Please mark me as Brainliest.