Forms of countertrade Barter The direct exchange of goods between traders. Barter requires a double coincidence of wants o a clearinghouse arrangement is a form of barter in which the traders agree to buy a certain amount of goods from each other They set up accounts with each other that are debited and credited as needed. At the maturity of the arrangement, the parties settle up in cash or merchandise a switch trade is the purchase by a third party of one country's clearing agreement balance for hard currency McGraw-Hilylrwoin 19-8 Copyright@ 2001 by The McGraw-Hill Companies, Inc. All rightsMcGraw-Hill/Irwin Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved. 19-8 Forms of Countertrade ⚫ Barter ◼ The direct exchange of goods between traders. Barter requires a double coincidence of wants. ⚫ A clearinghouse arrangement is a form of barter in which the traders agree to buy a certain amount of goods from each other. ◼ They set up accounts with each other that are debited and credited as needed. At the maturity of the arrangement, the parties settle up in cash or merchandise. ⚫ A switch trade is the purchase by a third party of one country’s clearing agreement balance for hard currency