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:

Profitability

The degree to which a company or economic activity yields profit or financial gain, often measured as a ratio or percentage of revenue.

Complement

A good or service that is used together with another good or service, increasing demand for both.

Substitute

A good or service that can be used in place of another good or service, typically because it serves a similar function or satisfies the same needs.

Demand Equation

A mathematical representation of the demand curve, expressing the relationship between the quantity demanded and various factors that influence it, such as price.