Which of the Following Is an Advantage of Countertrade

question 107

Multiple Choice

Which of the following is an advantage of countertrade?

• A) Firms can avoid setting up in-house trading departments.
• B) It addresses the issue of lack of trust in international business.
• C) It gives a firm a way to finance an export deal when other means are not available.
• D) Firms usually appreciate being paid in the form of goods and services instead of hard currency.
• E) It usually involves the exchange of high-quality goods that a firm can dispose of profitably.

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Definitions:

Availability

This term generally refers to the readiness or accessibility of an asset, resource, or product for use or sale.

Prices

The amount of money required to purchase a good, service, or asset.

Sector Rotation

An investment strategy that entails shifting the portfolio into industry sectors that are forecast to outperform others based on macroeconomic forecasts.

Portfolio

An assortment of financial assets encompassing shares, fixed income securities, raw materials, liquid cash, and near-cash items, along with inclusive of pooled investment vehicles like closed-end funds and ETFs.