What Is a Disadvantage of Barter as a Countertrade Arrangement

question 86

Multiple Choice

What is a disadvantage of barter as a countertrade arrangement?

• A) It is a very complex arrangement.
• B) If goods are exchanged simultaneously, one party ends up financing the other.
• C) Firms engaged in barter run the risk of having to accept goods they do not want or cannot use.
• D) It involves huge cash transactions.
• E) It cannot be used in transactions with trading partners who are not creditworthy.

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