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.

Question

Quizplus · Accepted Answer

Countertrade is a type of international trade where goods/services are exchanged for other goods/services instead of currency. This is usually done when conventional means of international trade are difficult or not feasible, such as when a country has strict foreign exchange controls, or when there is a lack of trust between trading partners. Therefore, option C is the best answer.

Countertrade Is Most Likely to Be Used When