Countertrade Occurs When the

question 70

Multiple Choice

Countertrade occurs when the

• A)exporter may not be paid in his or her home currency due to nonconvertibility.
• B)exporter can convert the currency only in U.S.dollars.
• C)exporter is dealing with a country that has huge foreign reserves.
• D)exporter has easy access to export credit to fund its international trade.
• E)importer defaults on payment.

---

Definitions:

Partnership Law

The legal framework that governs the creation, operation, and dissolution of a business partnership, including the rights and responsibilities of the partners.

Agency Relationship

The association between one party and an agent who acts on behalf of that party.

Binding Obligations

Duties or agreements that are legally enforceable, requiring parties to fulfill their contractual commitments.

Unlimited Personal Liability

A legal obligation that holds an individual personally responsible for all debts and obligations of a business, without any limit on the amount that can be claimed.