Countertrade: Pros and Cons

Abstract

The interest in countertrade increases in times of crisis and instability of the financial system. This pattern can be observed both within the single national economy and in the global economy. Today, the world that has not fully recovered from the COVID-19 pandemic is facing the threat of a new economic crisis. Its possible causes are the consequences of the pandemic and political conflicts, which together create significant risks for integration processes at the global and regional levels. Under these conditions, it seems reasonable to pay attention to countertrade, which hasrepeatedly proved its practical usefulness, and also demonstrated its certain integration potential. The article considers the main types of countertrade, factors contributing to the expansion of its use, as well as its inherent disadvantages. It is concluded that countertrade has certain integration and stabilizing potential, but it cannot replace regular trade transactions on a permanent basis. To the greatest extent, the advantages of countertrade are manifested in times of global crisis and recession in some countries.