Of the Following,which Is NOT True of Countertrade

question 17

Multiple Choice

Of the following,which is NOT true of countertrade?

• A)It is an ineffective way to gain entry into new markets.
• B)It is encouraged by stability and economic progress.
• C)It provides stability for long-term sales.
• D)It is highly sought after in large markets such as China.
• E)Uncompetitive goods may be traded.

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Definitions:

Cost Behaviours

The way in which different costs change in response to variations in the level of business activity or production volume.

Activity Levels

Refers to the quantity of work performed or production completed in a business within a specific period.

Target Sales Volume

The specific quantity of products a company aims to sell within a certain period to achieve its sales objectives and ensure profitability.

Fixed Costs

Expenses that remain constant regardless of how much is produced or sold, including items like rent, salaries, and insurance.