A Drawback of Countertrade Is That

question 29

Multiple Choice

A drawback of countertrade is that

• A) it fails to enable firms to finance an export deal.
• B) it is detrimental to the economy of the importing country.
• C) developing nations have trouble raising the foreign exchange necessary to pay for imports.
• D) it does not allow firms to invest in an in-house trading department dedicated to arranging and managing deals.
• E) it may involve the exchange of poor-quality goods that cannot be disposed of profitably.

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Definitions:

Causal Influence

Refers to how one variable directly affects another in a cause-and-effect relationship.

Reading Ability

Reading ability refers to the capacity to understand, interpret, and derive meaning from written symbols and texts.

Physical Weight

The measure of the force exerted on an object due to gravity, usually expressed in units such as pounds or kilograms.

Statistical Relationship

A connection between two or more variables, where changes in one variable are associated with changes in another, as determined through statistical analysis.