Which of the Following Statements Is True of Countertrade

question 48

Multiple Choice

Which of the following statements is true of countertrade?

• A) Countertrade reduces the profitability of competing firms and is considered an unethical practice.
• B) Countertrade is a conventional means to pay exporters.
• C) Smaller organizations commonly use countertrade in international transactions.
• D) Countertrade occurs when goods and services are traded for other goods and services.

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Definitions:

Prices Constant

A scenario in which the prices of goods and services remain unchanged over a period of time.

Budget Line

A graphical representation of all possible combinations of two goods that can be purchased with a given budget at specified prices.

Price of Clothing

The monetary value assigned to garments and textiles, determined by various factors including production costs, brand, and market demand.

Price of Food

The cost assigned to food products, which can vary based on factors such as region, availability, and demand.