�Countertrade� The chose topic in given global financing and exchange rate topics is countertrade. This paper is going to analyze Countertrade, also describe what countertrade is. It will also describe how it is used in global financing operations, and its importance in managing risks. When the pilgrims came to the North America they had cooking pots, mirrors and other similar items that they traded with fur and gold with the Native Americans�that is an example of countertrade, which is done in much bigger ways internationally. Countertrade is the exchange of goods for goods in full or partial payment of a sales transaction. The firms that participate in countertrade are usually large firms than the ones that do not. The size of the firm in is very significant in countertrade bigger the firm is easier it will be to absorb the risks of countertrade. A good example of countertrade�Caterpillar is a company that produces heavy construction equipment traded the machinery for 350,000 tons of iron ore with Venezuela then took the iron ore to Romania and traded with farm products,......

Word Count: 700
Page Count: 2.8 (250 words a page / double spaced)

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