De-globalization, poor countries flee from cash as bartering replaces currency
As the global economy falls into deeper recession, poor nations no longer have the credit to purchase basic stables. Bartering is replacing currency in these new multi-million dollar deals between nations. Countries are returning to century old trading practices that are counter productive to globalization. Bartering between nations was common as recent as 20 years ago.
The latest countries participating in the exchange of commodities includes Malaysia, Morocco, Vietnam and Russia. Bartering indicate that poor nations are taking the first steps to rebuilding their nations. Trading of basic commodities will eventually lead to bigger deals and will eventually create cash opportunities for third party businessmen?
As far back as the 80ís bartering was common and international businessman capitalized on bartering deals. This is an example: A Russian business man had access to Vodka wanted US air-conditioners, a businessman in the USA had air-conditioners but wanted cash, a business man in Italy wanted vodka and had pasta and a business man in Israel had cash and wanted pasta. The international business knew all of the contacts brokered a deal barter and cash to complete the transaction.
The Russian exporter sent his vodka to Italy, the Italian exporter sent his pasta to Israel the Israel paid his cash to the middle man, the middle man took his profit and sent the cash to the US exporter. The US exporter sent his air-conditioners to Russia. The multinational barter cash deal was complete.
New bartering opportunities will crop up between businesses in poor nations as bartering will replace cash in international deals.
Article By: W Mahar