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.

Question

Quizplus · Accepted Answer

Countertrade can result in the exchange of goods that are difficult to sell or of poor quality, leading to potential losses for the firms involved.

A Drawback of Countertrade Is That