What is barter trade?

Barter Trade (Barter Trade) refers to the payment and settlement of goods for goods, that is, goods are valued and then exchanged to supplement the lack of cash trade. Intergovernmental barter trade is also known as agreement trade, need to sign a trade agreement and payment agreement. Private barter trade includes compensation trade, and can also be partly cash and partly barter combination.

Traditional barter trade, generally buyers and sellers to exchange goods of equal value, does not involve the payment of money, there is no third-party intervention, the barter parties to sign a mutual exchange of goods including offsetting the contract, to determine the relevant matters. In international trade, the use of more is through the folio letter of credit way to barter.

Expanded Information:

Characteristics of Barter Trade:

1, the company's individual behavior: the use of the most traditional means of barter, each other's needs, with the exchange of commodities and the cut-off of economic activities;

2, a small range of internal transfers: by the specialized barter company to develop a unified internal membership, unified settlement, fees, internal free transfer, each for their own needs;

3, e-commerce Mode: the Internet company to provide an online trading platform, charging membership fees, the members of the free release of barter information, free trade;

4, government-led: by the government, the characteristics of the country's resources in exchange for the required products of other countries;

5, civil society organizations to coordinate: by the world's larger professional barter companies to sign a cooperation agreement, the exchange of mutual information belonging to the members to achieve the resource

Baidu Encyclopedia - Barter Trade