Theory of countertrade; a Look into Advantages of different types of Countertrade

Abstract

Countertrade is a trading method in which the exchange of goods or services takes place between two or more than two parties as per their need, without involving any money or currency. It happens according to the rules and regulations of countertrade of the countries involved in the process. The developing countries have practiced countertrade since many years for strengthening their economic and political position.

This paper aims to explore different advantage and disadvantages of the different types of the countertrade. This paper is comprises of 7 sections. First section introduces the study, subsequent section defines the concept of countertrade followed by a section elaborating the history of the countertrade. Fourth section describes various kinds of the countertrade, fifth and sixth section discusses the advantage and disadvantages of the countertrade while the final section concludes this study.