A form of barter in international trade in which the buyer requires the seller to accept goods (of the buyer's choosing) in lieu of currency. The seller has the task of marketing the goods. Another form of counter trade is the agreement by a seller of plant and machinery to 'buy back' the products produced by the plant and machinery in settlement of the debt. Counter trade is a popular device with the Communist Bloc countries when short of foreign exchange.
|Reference: The Penguin Dictionary of Economics, 3rd edt.|