Title: Evaluation of barter system in the defence industry

Authors: Fahrettin Ozturk; Tuncay Bayrak

Addresses: Department of Mechanical Engineering, Ankara Yildirim Beyazit University, 06010, Ankara, Turkey; Turkish Aerospace Industries, Inc., Kahramankazan, 06980, Ankara, Turkey ' College of Business, Western New England University, Springfield, MA, 01119, USA

Abstract: This study attempts to explore whether barter can be employed in the defence industry as a viable and alternative system of exchange. This study argues that bartering involves difficulties and inconveniences that may make it a less desirable payment option. However, various developing countries experiencing a shortage of hard currency and cash may want to consider bartering as an option to buy military equipment. This study further suggests that although extra human resources would be needed to assign a monetary value to the goods or services to be purchased in exchange, which may cause more complex bureaucratic processes, a barter system may be employed by the defence industries in various developing economies as a means to continue the trading of goods and services in times of economic instability, monetary crisis or currency devaluation.

Keywords: barter system; defence industries; counter trade; barter between countries.

DOI: 10.1504/IJRIC.2022.125888

International Journal of Research, Innovation and Commercialisation, 2022 Vol.4 No.1, pp.1 - 15

Received: 16 Jan 2022
Accepted: 27 Feb 2022
Published online: 03 Oct 2022 *