Countertrade is a general term that may convey several different meanings, all dealing with trade. The basic concept of countertrade is that the seller of the product receives something other than cash as a form of payment. In a traditional business transaction the seller would receive payment in a hard currency such as the U.S. dollar, on the other hand, in countertrade they will receive some good or service that has a monetary value that may be useful to them.

Many international businesses and corporations are using countertrade in selling their products overseas. Companies are purchasing local products to offset the exports of their own products into a market. Countertrade is a form of barter in which exporting firms is required to take the counter value of its sale in local goods and services instead of cash. There are three specific forms of countertrade: barter, counter purchase, and buyback. Barter is the direct exchange of goods and service between two parties without the use of currency.

The increased use of countertrade over the last few years may help developing nations accelerate their recoveries out of the global recession.  When compared to industrialized nations, developing economies usually are affected much worse by recessions.  During a global recession, it is difficult for LDCs to continue trading using traditional financial instruments.  The ability to use cash, letters of credit, or a loan is virtually impossible for a nations suffering with credit problems or political risk.