Which of the Following Is a Disadvantage of Barter as a Countertrade

question 104

Multiple Choice

Which of the following is a disadvantage of barter as a countertrade arrangement?

• A)It is a very complex arrangement.
• B)In a barter system,if goods are exchanged simultaneously,one party ends up financing the other.
• C)Firms engaged in barter run the risk of having to accept goods they do not want or cannot use.
• D)It involves huge cash transactions.
• E)It cannot be used in transactions with trading partners who are not creditworthy.

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Definitions:

Demographic Transition

A model describing the transition from high birth and death rates to lower birth and death rates as a country or region develops from a pre-industrial to an industrialized economic system.

Industrialized

Characterized by the development and growth of industries on a wide scale, often associated with technological innovation and mass production.

Germ Theory

The scientific theory that diseases are caused by the presence and actions of specific microorganisms.

Global Population Growth

The increase in the number of individuals in the world, often discussed in terms of its impact on resources and the environment.