What Is a Disadvantage of Countertrade

question 94

Multiple Choice

What is a disadvantage of countertrade?

• A) Countertrade contracts may involve the exchange of unusable or poor-quality good.
• B) Countertrade requires the firm to use an out-of-house trading company to which much of the profit will go.
• C) Countertrade contracts often involve high-quality, expensive goods that the firm cannot move enough of to be profitable.
• D) Countertrade requires employing lawyers who specialize in these unique types of contracts.

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Definitions:

Milgram Experiment

A psychological experiment conducted by Stanley Milgram in the 1960s to study obedience to authority, where participants were instructed to administer electric shocks to another person.

Stanford University Prison Experiment

A psychological study conducted by Philip Zimbardo in 1971 at Stanford University, where students were assigned roles of prisoners and guards to explore the effects of perceived power.

Generalization

Drawing a conclusion about a certain characteristic of a population based on a sample from it.

Logical Support

The provision of reasons or evidence to justify a claim or argument.