Nations with serious debt problems, such as Mexico, Brazil and Argentina, have been compelled to devote almost all their export earnings to debt service, leaving themselves with virtually no surplus to pay for imports. With barter, however, debtor nations can continue to import goods while,in effect, concealing export earnings from creditors.
But countertrade is not the exclusive province of debtor nations. Says Yoffie, "Even countries with strong foreign exchange positions, such as Australia, Canada and Indonesia, are insisting on countertrade in certain areas. Linking imports and exports is a way to exert power over multinational corporations. Countries that lack expertise in international marketing try to use countertrade as leverage to tap the networks of global firms."
What are the advantage and disadvantage of barter?
【正确答案】：Advantages： (1)With barter,debtor nations can continue to import goods while concealing export earnings from creditors． (2)Countries that lack expertise in international marketing can find access to the network of global firms． Disadvantages： (1) With barter,the manufacturers of poor products are not encouraged to better their products or improve their competitive power. (2)Barter is likely to bring about high cost of transaction,since buyers have to resell these goods that they don't need by intermediaries.
