What is barter?

Barter economy is also called barter trade. It refers to a trade mode that directly combines equivalent export goods and imported goods on the basis of exchanging goods. In traditional barter trade, buyers and sellers generally exchange goods of equal value, which does not involve monetary payment or the intervention of third parties. The barter parties sign a contract including mutual exchange of compensation goods to determine related matters. In international trade, barter transactions are usually carried out by opening letters of credit. \x0d\ direct barter \x0d\ direct barter is also called general barter. Strictly speaking, barter means barter. This form of direct barter usually requires both import and export. Generally speaking, a transaction only involves a contract in which two parties deliver mutually compensated goods, and does not involve a third party. This is the most common and widely used form of barter. \x0d\ comprehensive barter \x0d\ comprehensive barter is mostly used for transactions between two countries according to accounting or payment (settlement) agreements. According to the signed payment agreement, the two governments set up accounts in each other's banks, and the banks of the two countries settle foreign exchange on the basis of freight documents, and charge them in the accounts opened in the other country, and then the banks settle the accounts according to the agreed time limit.