When PepsiCo Sold Its Cola Syrup to Russia for Rubles

question 95

True/False

When PepsiCo sold its cola syrup to Russia for rubles and agreed to buy Russian vodka at a certain rate for sale in the United States, it was engaged in the form of countertrade known as an offset.

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Definitions:

Commercial Republic

A concept describing a state that is guided by economic interests and where commercial activities are vital to the nation's interests and policies.

Federal Government

The national or central government of a federated state, which shares sovereignty with its constituent units.

Commerce Clause

A provision in the U.S. Constitution that grants Congress the power to regulate commerce with foreign nations, and among the several states, and with the Indian tribes.

Growth of National Power

The increase in strength and influence of a nation’s government over time, often in terms of political, economic, or military capacity.