Countertrade
• The sale of a good, service, know-how or system in one direction is conditional upon the sale of a good orservice as part or full payment in the reverse direction.
• More than 20% of world trade is financed through countertrade transactions.
– World debt crisis
– Circumvention of exchange controls
– Bilateralism
– Entry into new markets
– Major growth opportunities in emerging markets lacking hard currency and cash-strapped countries
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