ABSTRACT
Countertrade occurs when a buyer pays for a purchase with products or services of comparable value. Countertrade is a form of barter that is likely to be encountered by international marketers doing business outside Western Europe, Canada, and Japan. Countertrade offers numerous advantages, including accessing foreign markets that would be unable to be entered otherwise. Counterpurchase is the most commonly employed form of countertrade in which money is involved. Since the passage of the Export Trading Company Act of 1982, US banks have been permitted to assist international marketers develop countertrade agreements. The banks can lend money to foreign buyers who need cash to arrange a counterpurchase. Bank credit countertrade has made entering into countertrade more feasible for many US businesses. The international marketer may embrace a defensive, passive, reactive, or proactive strategy toward countertrade. A bilateral barter, also known as an offset, is countertrade in the classical sense.
