What Is a Characteristic of Countertrade

question 78

Multiple Choice

What is a characteristic of countertrade?

• A) The governments of developing nations sometimes insist on a certain amount of countertrade.
• B) Countertrade is a means of structuring an international sale when conventional means of payment are cost-effective.
• C) Nonconvertibility is an advantage for exporters.
• D) Nonconvertibility implies that the exporter will be paid only in his or her home currency.
• E) Most exporters desire payment in a currency that is not convertible.

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Definitions:

Speculative Demand

The demand for a good or asset based on expectations of future price changes, rather than its intrinsic value or productive use.

Unexpected Opportunities

Unforeseen chances or prospects that arise, potentially beneficial for decision-making or strategic planning.

Cash Management

Cash management involves the collection, handling, and usage of cash. It aims to manage a company's short-term financial stability and liquidity.

Adequate Liquidity

The ability of an entity to meet its short-term financial obligations with its readily available assets.