Skip to main content

COUNTER TRADE

Counter trade, a modern variant of the age old system of trade by barter, has emerged as a new feature of economic relationship. For a nation which is suffering from a drastic reduction in its foreign exchange earnings and trade arrears with Western export credit agencies, counter trade has the attraction of providing goods for the domestic market without draining the scarce foreign exchange. The low credit rating which the country has in the international capital market and the unwillingness of the government to adhere strictly to the international monetary fund's supervised adjustment programme also favour counter trade in the system.
    However, there are grounds for insisting that counter trade should be used with caution. Counter trade is a form of gambling. As with every other forms of trade by barter, one partner is inevitably going to be better off than the other in the end. This will be determined by what monetary value is assigned to the goods exchanged and how constant this remains within the duration of the transaction. For example, if the agreement is based upon the current price of oil, a subsequent price decrease will make Africa exchange more barrels of oil for the same value of goods, while an increase in price will yield the opposite effect.

Comments

Post a Comment

Popular posts from this blog

Why kids run away

Why Kids Run Away Remember how you felt the last time you got in a big fight with your parents or one of your brothers or sisters? That kind of anger and hurt can be what pushes someone to run away from home.These are problems faced by lots of kids and teens — and there are ways to deal with all of these problems besides running away. Kids who think about running away might not know how to solve tough problems or don't have adults to help them. Sometimes a really big problem can make it seem like running away is the only choice. Unfortunately, the problems kids hope to escape by running away are replaced by other — sometimes even bigger — problems of life on the streets. When you think about running away, you probably imagine that there will be no more rules, no parent to tell you what to do, no more fights. Sounds great and exciting, right? In reality, running away is anything but fun. Kids and teens who run away face new problems like not having any money, food to eat, a s...
Post a Comment
Read more

THE RIVER CROSSING.

It is no military secret that an opposed river crossing operation is difficult even under ideal conditions. But without adequate standard equipment and with a poor level of training of soldiers and officers, it could become impossible. But the Army Headquarters and Supreme Headquarters had strongly advised against embarking on an opposed river crossing because of inadequacy of equipment and deficiency in the training of troops for such a semi-specialist operation. The Supreme Headquarters had advised on unopposed crossing while the division passed through 1 Division's secure position to capture the town. The Division commander decided to take a grave and calculated risk that could be called bravado. But if the operation had been successful, as it nearly was, it would have been one of the most praiseworthy operations of the entire war. In the end, it failed and the commander had to take the blame for it.     The first landing, in which the Division Commander himself took part,...
Post a Comment
Read more

HERNIA

Hernia occurs in an individual when part of the intestine pushes through the wall of the abdomen and appears as a bulge at the site. There are many sites where hernia can occur, although the commonly encountered type is that found in the groin. This type of hernia is known as femoral or inguinal hernia. Hernia may occur on the navel or near it. The hernia which occurs on the navel is called umbilical hernia, while that which occurs close to it is known as paraumbilical hernia. These two types of hernia are less common than the femoral type.   Groin hernia occurs more commonly in males, but can also occur in females in a few cases. In this kind of hernia, there is a weakness in the abdominal wall in the groin region about midway across the groin. It may appear on either side or, sometimes on both sides. A good sign is that swelling increases, initially it can be pushed back manually into the body. Later on, it gets bigger still and lies almost permanently outside the body, especi...
1 comment
Read more