Countertrade Is Most Likely to Be Used When

question 115

Multiple Choice

Countertrade is most likely to be used when

• A)the foreign currency is easily convertible.
• B)the exporter has a letter of credit.
• C)the conventional means of international trade transaction are difficult.
• D)there is mutual trust between the exporter and the importer.
• E)an export management company is used.

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Definitions:

Obligee

The party in a contract or agreement who is entitled to receive a benefit or performance from the other party, known as the obligor.

Delegatee

An individual or party to whom a task, duty, or responsibility has been delegated or transferred.

Personal Services

Services provided to individuals that may include care, advice, or professional work, typically requiring personal skills or effort.

Executory Contract

A contract under which both parties have obligations that are yet to be fulfilled.