Which of the Following Statements Is True of Countertrade

question 23

Multiple Choice

Which of the following statements is true of countertrade?

• A) Countertrade is practiced by countries when there is a lack of hard currency.
• B) Countertrade involves products whose prices on world markets tend to remain steady.
• C) Countertrade usually involves industrial products and computer softwares.
• D) Hedging risk in countertrade is prohibited.

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Definitions:

Run Out Of Oil

A hypothetical scenario in which the world's reserves of petroleum are depleted, leading to potential energy crises.

Natural Resource Economics

A branch of economics that studies the optimal use and management of natural resources.

Harvesting

The process of gathering ripe crops from the fields, or in a broader business context, the act of capturing value from a business initiative or venture once it has matured.

Real GDP

The measure of the value of economic output adjusted for price changes (inflation or deflation), providing a more accurate reflection of an economy's size and growth.