Page 12 - Countertrade
P. 12
Benefits of Barter System
Leverages unused Inventory:
In the modern era, unused inventory e.g. end of line stock or obsolete
product can be traded and products / services of value can be
exchanged.
Reduced Cash Outlay:
Organizations may prefer to procure products/ services through barter
thereby reducing their cash outlay. In periods of cash shortages this may
be an attractive trade alternative.
Opens New Market:
Barter expands market horizons through opening new markets and
opportunities. Moreover, if organisations work in concert to create
networks for bartering the more likely is it that new market penetration
will be achieved.
