Why Do Firms Engage in Countertrade

question 41

Multiple Choice

Why do firms engage in countertrade?

• A)Firms in developing countries are unable to secure bank loans.
• B)Governments sometimes mandate countertrade as a form of payment.
• C)Firms in developing countries lack access to hard currency.
• D)All of the above are true.

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Definitions:

Efficient Frontier

In finance, a set of optimal portfolios that offer the highest expected return for a given level of risk or the lowest risk for a given level of expected return.

Responsiveness

The ability of an organization or system to quickly react to changes or needs within its environment or among its stakeholders.

Supply Chain

The network of all the individuals, organizations, resources, activities and technology involved in the creation and sale of a product, from the delivery of source materials from the supplier to the manufacturer, and eventually to the end user.

Replenishment Lead Time

The interval between the placement of an order and its delivery, significant in inventory management and planning.