Countertrade

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Dictionary Says

Definition of 'Countertrade'

A trade between two countries by which goods are exchanged for other goods rather than for hard currency.
Investopedia Says

Investopedia explains 'Countertrade'

Sometimes both parties are happy with the goods they receive; other times one country will liquidate the received asset, ultimately receiving cash in the deal. This is also referred to as "using barter to complete a trade."

The former Soviet Union would often countertrade, agreeing to trade, say, Soviet oil for another country's vehicles.

Related Definitions

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    Barter

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    1. Funding by a government or organization that is repetitive, rather than a one-time grant. Examples include ongoing government daycare subsidies or firms that pay annual scholarships ...
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