Countertrade

Definition

Countertrade is a form of international trade in which goods or services are exchanged for other goods or services, rather than for money. This practice can help businesses overcome the challenges of currency exchange rates and liquidity issues in foreign markets.

Related terms

Barter:

An exchange of goods or services directly for other goods or services without the use of money.

Compensation deal: A type of countertrade where part payment is in kind (goods/services) and the remainder possibly in cash.

Switch trading: A practice in countertrade where a third party purchases the counter-purchase credits from an exporter and sells them to another company that can use them