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:

Rhizomes

A type of underground stem that sends out roots and shoots from its nodes, often used in plant reproduction.

Secondary Sex Characteristics

Physical features that emerge during puberty which are not directly involved in reproduction but distinguish the sexes.

Gonads

The primary reproductive organs that produce gametes (sperm or eggs) and sex hormones, including ovaries in females and testes in males.

Thyroid

A gland in the neck that produces hormones regulating growth and metabolism.