Recently the Russian subsidiary of PepsiCo needed to import bottling equipment from the United States.However, the Russian government did not allow the company to exchange rubles for dollars, so it exported Russian vodka to the United States to earn enough dollars to import the needed equipment.This would be an example of _____.

Question

Quizplus · Accepted Answer

This is an example of countertrade, which is a form of international trade in which goods or services are exchanged for other goods or services rather than for hard currency. In this scenario, PepsiCo's Russian subsidiary used vodka as a medium of exchange to acquire the dollars needed to import bottling equipment, fitting the definition of countertrade.

Recently the Russian Subsidiary of PepsiCo Needed to Import Bottling