Which of the following discourages countertrade?
A)shortage of foreign exchange.
B)shortage of available credit.
C)desire to promote labor-intensive exports.
D)well-developed domestic economy.
E)need to develop export markets for new products.

Question

Quizplus · Accepted Answer

Countertrade is often used when there is a shortage of foreign exchange or available credit. Additionally, countries with a desire to promote labor-intensive exports or the need to develop export markets for new products may also engage in countertrade. However, a well-developed domestic economy would likely discourage the use of countertrade because it is not as efficient or cost-effective as traditional forms of trade. Thus, option D is the most appropriate choice.

Which of the Following Discourages Countertrade