One way of importing goods without the use of foreign exchange is through
Answer Details
One way of importing goods without the use of foreign exchange is through counter trade. Counter trade is a type of international trade in which goods are exchanged for other goods or services, rather than using currency as a medium of exchange.
Under counter trade, two parties agree to exchange goods of equal value, without any cash transaction. For example, a company in Nigeria may export agricultural produce to a company in China, in exchange for technology or machinery. In this way, the Nigerian company can obtain the technology or machinery it needs without having to pay for it in foreign currency.
Counter trade is a common practice in countries with limited foreign exchange reserves or those facing foreign exchange shortages. It allows companies to bypass the need for foreign currency, making it easier to import goods and services that would otherwise be unaffordable.
Therefore, "counter trade" is a way of importing goods without the use of foreign exchange. However, it is worth noting that counter trade can be complex and may involve risks such as quality control issues, exchange rate fluctuations, and difficulties in matching goods of equal value.