Barriers to International Trade

There are basically three barriers to International trade that are used by countries, and they are as follows:

Methods of settling debts in Counter Trade

1. Barter
2. Switch trading
3. Counter purchase
4. Buyback
5. Offset

Methods of settling debts in International Trade

a. Advance Payment
b. Open Account
c. Consignment Sale
d. Bill for Collection

Means and Methods for settlement of International Payment

There are some means and methods for settlement of international payment:

i. Foreign accounts of Banks:
a. Nostro Accounts
b. Vostro Accounts
c. Loro Accounts

ii) Credit Instruments:
a. Telegraphic Transfer (TT)
b. Mail Transfer (MT)
c. Banker's Draft
d. Bills of exchange
e. Letter of Credit
f. Stock Draft
g. Personal Cheques/Dividend Warrants etc.
h. SWIFT-The Society for World-wide International Financial Telecommunications

iii) Other means of International payment:
a. Currency notes and coins
b. Bullion/Gold
c. International Money Order

iv) Travel Transaction:
a. Traveler's Cheque
b. Credit Cards
c. Eurocheques
d. Foreign Currency Accounts