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What Is Not a Reason for Countertrade

Question 49

Multiple Choice

What is not a reason for countertrade?


A) The world debt crisis and exchange rate volatility have made ordinary trade financing very risky.
B) The use of countertrade permits the covert reduction of prices and therefore allows firms and governments to circumvent price and exchange controls.
C) Many countries in the developing world cannot obtain the trade credit or financial assistance necessary to afford desired imports.
D) Countertrade is often viewed by firms as an excellent mechanism to exit markets.

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