Which of the following statements is true of countertrade?
A) Countertrade reduces the profitability of competing firms and is considered an unethical practice.
B) Countertrade is a conventional means to pay exporters.
C) Smaller organizations commonly use countertrade in international transactions.
D) Countertrade occurs when goods and services are traded for other goods and services.

Question

Quizplus · Accepted Answer

Countertrade denotes a whole range of barter-like agreements; its principle is to trade goods and services for other goods and services when they cannot be traded for money. Countertrade is an alternative means of structuring an international sale when conventional means of payment are difficult, costly, or nonexistent.

Which of the Following Statements Is True of Countertrade