Counter Trade - Assignment ExampleSwitch trading as a countertrade assists global financial operations in instances where a company in a given state is short of obligations thereby hindering from making a purchase. Therefore, the company in need of the obligations would do a switch by buying the obligations from another company for it to be able to make a purchase as was observed by Contractor and Lorange (2002). Countertrade is also applied as a global financial operation in the form of a counter purchase. Contractor and Lorange (2002) argue that a counter purchase assists in transferring goods and services from an organization in one country to another in a different country, that promises to make a future purchase of goods from the same company. This form of countertrade enables the company that does not have the products needed to get them from another company that has the same products. This helps the first company to assure its continuity and, therefore, to avoid closure.
