abhishreshthaa
Abhijeet S
Barter
Given the severe shortage of hard currency suffered by many countries, especially in emerging nations and Eastern Europe, barter agreements are becoming more popular.
They include:
• Straight barter, a direct exchange of goods for goods
• Contra-trading, an exporter agrees to accept goods a part-payment but the deal is structured as two separate cash transactions
• Buy-back contracts, a supplier of a turnkey operation agrees to accept part-payment in the form of goods the factory will produce
• Switch-deals, a series of transactions between a number of participants in different countries
These arrangements have a number of advantages.
They provide access to some markets that would otherwise be out of reach, scarce exchange is conserved and goods, which are difficult to sell, can be exchanged. Barter deals are also often larger than other transactions.
Given the severe shortage of hard currency suffered by many countries, especially in emerging nations and Eastern Europe, barter agreements are becoming more popular.
They include:
• Straight barter, a direct exchange of goods for goods
• Contra-trading, an exporter agrees to accept goods a part-payment but the deal is structured as two separate cash transactions
• Buy-back contracts, a supplier of a turnkey operation agrees to accept part-payment in the form of goods the factory will produce
• Switch-deals, a series of transactions between a number of participants in different countries
These arrangements have a number of advantages.
They provide access to some markets that would otherwise be out of reach, scarce exchange is conserved and goods, which are difficult to sell, can be exchanged. Barter deals are also often larger than other transactions.