Which of the following is a disadvantage of barter as a countertrade arrangement?
A)It is a very complex arrangement.
B)In a barter system,if goods are exchanged simultaneously,one party ends up financing the other.
C)Firms engaged in barter run the risk of having to accept goods they do not want or cannot use.
D)It involves huge cash transactions.
E)It cannot be used in transactions with trading partners who are not creditworthy.

Question

Quizplus · Accepted Answer

Firms engaged in barter run the risk of having to accept goods they do not want or cannot use, which can result in inefficiency and a loss of value for both parties.

Which of the Following Is a Disadvantage of Barter as a Countertrade