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:

Break-even

The point at which total revenues equal total costs, resulting in no net loss or gain.

Sales Dollars

The total monetary value of sales transactions made within a specific period, reflecting the revenue generated from selling goods or services.

Common Fixed Expenses

Regular, unchanged expenses that a business incurs, regardless of the level of production or sales volume.

Break-even

The point at which total costs and total revenue are equal, indicating that a business makes neither a profit nor a loss.