Answer to Question 1
Countertrade is a sale that encompasses more than an exchange of goods, services, or ideas for money. In the international market, countertrade transactions are those transactions which have as a basic characteristic a linkage, legal or otherwise, between exports and imports of goods or services in addition to, or in place of, financial settlements. Historically, countertrade was mainly conducted in the form of barter, which is the direct exchange of goods of approximately equal value, with no money involved. These transactions were the very essence of business at times when no money existed or was available. Over time, money emerged to unlink transaction from individual parties and permit greater flexibility in trading activities.
Answer to Question 2
True
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