Business Studies, asked by pariveshsharma, 1 year ago

when counter trade can be beneficial for a country?

Answers

Answered by writersparadise
1

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.

Answered by wajahatkincsem
2
counter trade means trade of good for goods.There is no exchange of currency of any kind.For the items you trade to other country you get the item our your need in return.For example if one country have good agriculture products and other is rich in its oil them both countries can get benefit by exchanging there goods
A country can benefit from counter trade when the currency is non exchangeable. or when the the other country has something that you have a shortage of, or simply when other country does not have any money to offer. 
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