How do you explain the continued existence of counter trade? Under what scenarios might its popularity increase still further by the year 2015? Under what scenarios might its popularity decline?© BrainMass Inc. brainmass.com September 22, 2018, 10:31 pm ad1c9bdddf - https://brainmass.com/business/international-finance/continued-existence-of-countertrade-536819
Countertrade is the oldest form of trading, simply because money wasn't needed as an exchange. In a countertrade, one person or group trades their items of value for the other person's items, and it fulfills all requirements of the trade. No actual currency is needed or used, other than the goods exchanged. Countertrade has survived, and will continue to survive, for a few reasons. The main reason is because regardless of the economic stability from the currency itself, the availability of any country's currency, or appreciation/depreciation factors involving currency, the countertrade can still take place. In some countertrades, a small amount of money is accepted, but far below what would be, for the goods exchanged. This still has an advantage, because much less money is needed for the trade, as ...
This solution explains the continued existence of counter trade, and if counter trade is likely to increase by the year 2015. Circumstances under which counter trade would decrease are also examined.