Counter Trade Assignment Example | Topics and Well Written Essays - 250 words

forebode Trade - Assignment ExampleSwitch trading as a countertrade assists global financial operations in instances where a caller-up in a given state is short of obligations thereby prevent from making a purchase. Therefore, the company in involve of the obligations would do a switch by buying the obligations from another company for it to be able to make a purchase as was observed by Contractor and Lorange (2002). Countertrade is also applied as a global financial operation in the figure out of a counter purchase. Contractor and Lorange (2002) argue that a counter purchase assists in transferring goods and work from an musical arrangement in one country to another in a different country, that promises to make a hereafter purchase of goods from the same company. This form of countertrade enables the company that does not have the products needed to get them from another company that has the same products. This helps the first company to assure its continuity and, therefore, to avoid closure. Countertrade is one way in which applied science can be exchanged between countries in the form of redemptions according to Contractor and Lorange (2002). A buyback also enables a company to acquire plants, equipments, and receive training easily through countertrade, thereby promote growth in financial operations.Countertrade is one of the best ways of managing risks. This is because a company that is in need of products and services but is short of hard bills may still manage to acquire products and services through countertrade. This eliminates the dangers that may face the company such as closure. Countertrade is also another way of managing currency risks such as those due to non-convertibility of and fluctuation in currency value. Since countertrade does not involve currency, the business is neer affected by the fluctuation in currency or non-convertibility (Trent, 2007).In conclusion, countertrade is one of the