If South Africa were to trade diamonds to the UK in exchange for heavy machinery, these countries would execute a(n)

Name: If South Africa were to trade diamonds to the UK in exchange for heavy machinery, these countries would execute a(n)
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Question

Quizplus · Accepted Answer

This is an example of countertrade, which involves the exchange of goods or services instead of money. In this case, South Africa is trading diamonds (a commodity) for heavy machinery (a capital good), bypassing the need for cash currency.

If South Africa Were to Trade Diamonds to the UK