Which of the Following Is True of Countertrading

question 11

Multiple Choice

Which of the following is true of countertrading?

• A) Frequently there is inadequate time to conduct a market analysis in a countertrade negotiation.
• B) Identifying countries that have a history of countertrading is one of the major problems with countertrades.
• C) The use of countertrading to sell a good implies that the demand for the good is highly elastic.
• D) Countertrading does not benefit countries that face a shortage of hard currencies with which to trade.
• E) The U.S. dollar is the reserve currency that is used in countertrades.

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