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:

Mechanisms

The structures or processes that produce a particular effect or fulfill a function within a system.

Mathematical Ability

The capacity to understand, analyze, and apply mathematical concepts and principles.

American Counterparts

Refers to entities or individuals in the United States that have a role, function, or aspect similar to those in another country or context.

Japanese School Teachers

Educators in Japan, known for their role in a highly structured and competitive education system, emphasizing respect, discipline, and academic achievement.