Global Financing and Exchange Rate Mechanisms
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Mechanisms pg.1
Global Financing and Exchange Rate Mechanisms
MGT/448
Mechanisms pg.2
Global Financing and Exchange Rate Mechanisms
Countertrade is a different way to complete a sale that is international when currency is just not an option. Barter is a well-known word that involves the exchanging or trading of goods instead of the use of money. In societies, before a currency system was put into place, they mainly relied on bartering goods and services. This type of system was very time consuming and eventually a money system was put into place so they could put a specific value amount on each item traded. They used to have groups that would grow corn and other groups that would raise sheep (Hill,2009). They made agreements to trade amongst each other for what was needed at that time in history. This type of system still goes on to a certain degree but most of the time money is also involved. On a local level the barter system seems to work good even when money is involved in the transaction. However, on a global level when currency is involved it tends to be somewhat difficult because the value of money in different countries make it a problem. We will discuss the basic countertrades through bartering, the strategies, and the different types used.
Countertrade is basically a system that involves bartering. Some businesses in some countries just are not able to accept currency that may not be convertible. They just simply make the transactions work through the system of...
Global Financing and Exchange Rate Mechanisms
MGT/448
Mechanisms pg.2
Global Financing and Exchange Rate Mechanisms
Countertrade is a different way to complete a sale that is international when currency is just not an option. Barter is a well-known word that involves the exchanging or trading of goods instead of the use of money. In societies, before a currency system was put into place, they mainly relied on bartering goods and services. This type of system was very time consuming and eventually a money system was put into place so they could put a specific value amount on each item traded. They used to have groups that would grow corn and other groups that would raise sheep (Hill,2009). They made agreements to trade amongst each other for what was needed at that time in history. This type of system still goes on to a certain degree but most of the time money is also involved. On a local level the barter system seems to work good even when money is involved in the transaction. However, on a global level when currency is involved it tends to be somewhat difficult because the value of money in different countries make it a problem. We will discuss the basic countertrades through bartering, the strategies, and the different types used.
Countertrade is basically a system that involves bartering. Some businesses in some countries just are not able to accept currency that may not be convertible. They just simply make the transactions work through the system of...