BARTER SYSTEM AS AN INNOVATIVE AND ALTERNATIVE FINANCIAL AND TRADE MODEL DURING THE PERIODS OF ECONOMIC CRISIS AND RECESSION AND ITS IMPORTANCE FOR BUSINESSES

Authors : Ozgul UYAN

Pages : 340-348

Doi:10.17261/Pressacademia.2017.553

View : 10 | Download : 10

Publication Date : 2017-06-30

Article Type : Research Paper

Abstract :Today, increasing trade and financial integration between countries with globalization leads to intense competition and global economic crises in national and international markets. Due to these developments, the companies have some difficulties carrying on their business with traditional marketing and financing techniques and use alternative methods. One of them is barter system, which is based on the principle of buying and selling goods and services without using money. Barter is innovated form of exchange system, which has been used as a trading method since the early ages; today, it is also used as a counter-trade type. Barter offers companies various benefits such as moving overstock, utilizing idle capacity, increasing sales, finding new markets, supplying interest-free credit, conserving cash, debt configuration, foreign trade facilitation. The aim of this study is to examine the benefits of bartering in terms of commercial and financial dimensions. As a result of the study, it has been determined that barter is an innovative alternative to traditional mentality based on interest, and It is a type of trade and finance that will contribute to the country`s economy by relaxing companies even in times of crisis. Nevertheless,  it has been determined that barter instrument is not well recognized in Turkey, barter industry is not institutionalized, national and international barter transactions has not become widespread enough. Legal regulations are needed for effective, safe and widespread application of barter. 
Keywords : Barter finance, competition strategy, economic crisis, innovation management, international trade