ABSTRACTThis article provides a theoretical discussion of countertrade benefits and problems. It then comments on data collected in a 1985 study of large British firms which demonstrate that actual countertrades have perceptions of the effects of this practice which differ markedly from the perceptions of companies that do not countertrade. Throughout, the findings on benefits and problems are compared as between international and domestic cotmtertraders and non‐countertraders. It is concluded that many more UK firms could benefit from participation in countertrad