ABSTRACT
Countertrade is a term used to describe the exchange of products or services for other products or services. That is, payment is made in products, services, or both instead of cash. Countertrade is a means by which international trade may be accomplished in nations that are experiencing balance of payments problems, that suffer from severe inflation, have weak or blocked (nonconvertible) currencies, and have insufficient amounts of foreign exchange. Countertrade becomes increasingly attractive during periods of worldwide tight money and high interest rates. Managers who engage in international marketing outside Western Europe, Canada, and Japan may encounter requests to countertrade.
