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Question

Counter–trade means :

This question was previously asked in
UGC NET 2015 Paper 1 Question Paper (27-Dec-2015)
The correct answer is

A sort of bilateral trade where one set of goods is exchanged for another set of goods and a seller provides a buyer with deliveries.

Counter-trade is an arrangement in international trade in which payment is made wholly or partly in goods rather than in money: the seller delivers goods to the buyer and, in return, accepts goods from the buyer.

It is essentially bilateral, covering forms such as barter, counter-purchase, buy-back and offset, and is used when the buyer lacks convertible currency. This matches the description of a bilateral trade in which one set of goods is exchanged for another and the seller makes deliveries to the buyer.

Selling directly to end-users in the target market describes direct exporting, a mode of market entry, not counter-trade.

An exchange of goods merely between companies of two sovereigns omits the essential reciprocal delivery obligation, and describing it as multilateral is wrong because counter-trade deals are struck between the two trading parties.

Hence, the answer is A sort of bilateral trade where one set of goods is exchanged for another set of goods and a seller provides a buyer with deliveries..

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