Identify a Drawback of a Countertrade Agreement

question 116

Multiple Choice

Identify a drawback of a countertrade agreement.

• A) It fails to give firms a way to finance an export deal.
• B) It requires an in-house trading department to be maintained, which can be expensive and time-consuming.
• C) It is detrimental to the economy of the importing country.
• D) Developing nations may have trouble raising the foreign exchange necessary to pay for imports.
• E) It is not an acceptable means of trading in most developing countries.

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