This paper explains that counter trade mechanisms come in many different forms; the most common form, used especially among
lesser-developed countries, involves businesses exchanging commodities without using money, with a bank managing the exchanges. The author describes other forms of counter trade, including buy-back, getting partial cash and partial goods payment for services or good offered; offset, selling a high-dollar contract of equipment to a company in another country, which, in return, agrees to purchase a high-dollar contract of goods back from the country; and bilateral trading agreements between foreign governments. The paper relates that, although there are benefits, there are risks with this form of exchange mechanisms; therefore, it is important to have an
agreement in place that meets the legal requirements of both countries involved.