The motivation to countertrade (CT) can be attributed to many factors including circumventing credit and foreign exchange problems, surmounting barriers to otherwise closed markets, hiding price cuts, or simply the need by exporters to remain competitive. However, C T arrangements essentially constitute packages of buying, selling, and financing contracts. Hence, to explain C T requires explanation of why package deals are preferred to a set of component contracts. Examination of domestic C T with "international ramifications" stripped out suggests the inherent rationales are wishes to hide price cuts and to overcome cash shortages, motivations that are consistent with data collected from U.K. and Canadian firms, which also stress problems of contracting complexity and offinding uses for the countertraded goods.