A manufacturing facility in a Mexico was unable to afford the products it needs from an American supplier because Mexico's currency dropped dramatically.To acquire the parts needed to produce its products,the Mexican facility bartered with several companies in Texas,offering completed goods for parts.This direct exchange of goods for goods is known as countertrading.

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Sometimes other countries may wish to import American goods but lack the currency to pay for them.In that case,the exporting U.S.company may resort to countertrading,which is bartering goods for goods.When the Russian ruble plunged in value in 1998,some goods became a better medium of exchange than currency.

A Manufacturing Facility in a Mexico Was Unable to Afford