What Is Not a Reason for Countertrade

question 55

Multiple Choice

What is not a reason for countertrade?

• A)The world debt crisis and exchange rate volatility have made ordinary trade financing very risky.
• B)The use of countertrade permits the covert reduction of prices and therefore allows firms and governments to circumvent price and exchange controls.
• C)Many countries in the developing world cannot obtain the trade credit or financial assistance necessary to afford desired imports.
• D)Countertrade is often viewed by firms as an excellent mechanism to exit markets.

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Definitions:

Phagocytic Cell

A type of immune cell capable of engulfing and absorbing bacteria, other foreign bodies, and sometimes dead cells.

Macrophage

A macrophage is a type of white blood cell part of the immune system, capable of phagocytosis, engulfing and digesting cellular debris, foreign substances, microbes, and cancer cells.

Centrioles

Cylinder-shaped organelles found in the cells of animals and most algae that help in the organization of spindle fibers during cell division.

Intracellular Digestion

A metabolic process where cells break down nutrients within their internal structures, such as lysosomes, to obtain energy and building blocks.