Consider the Incidence of Countertrade.Where Is It Most Common

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The Answer is Countertrade became popular in the1960s as a way for the Soviet Union and the Communist states of Eastern Europe,whose currencies were generally nonconvertible,to purchase imports.During the1980s,the practice became popular in many developing nations that lacked the foreign exchange to purchase necessary imports.Estimates of the percentage of world trade covered by some sort of countertrade agreement range from highs of 8 and 10 percent by value to lows of around 2 percent.In the tight monetary regime that followed the crisis in 1997,many Asian firms found it very difficult to get access to export credits to finance their own international trade.Thus they turned to the only option available to them-countertrade.

Consider the Incidence of Countertrade.Where Is It Most Common

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