Discuss the advantages and drawbacks of countertrade.

Advantages of countertrade include its ability to enable companies to venture into tough markets with a shortage of foreign currency. It also empowers companies to compete better against their adversaries as its product is familiar to the consumers. It also enables companies to dispose of surplus or declining products.

Drawbacks of countertrade include the uncertainty in determining the quality and value of goods being acquired by a company. A company is also faced with the dilemma of what it should do with the goods acquired. Countertrade is also associated with higher transaction costs, especially when the goods pass through various middlemen.

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Academic.Tips. 2023. "Discuss the advantages and drawbacks of countertrade." March 12, 2023. https://academic.tips/question/discuss-the-advantages-and-drawbacks-of-countertrade/.

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