One Drawback of a Countertrade Agreement Is That

question 63

Multiple Choice

One drawback of a countertrade agreement is that

• A) it fails to give firms a way to finance an export deal.
• B) it requires an in-house trading department to be maintained, which can be expensive and time-consuming.
• C) it is detrimental to the economy of the importing country.
• D) developing nations may have trouble raising the foreign exchange necessary to pay for imports.
• E) it is not an acceptable means of trading in most developing countries.

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Definitions:

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