A Mexican firm has agreed to trade petroleum to an American importer in return for U.S.-made computers. This arrangement is an example of:

Question

Quizplus · Accepted Answer

This type of trade refers to the exchange of goods or services without the use of money as a medium of exchange. In this case, the Mexican firm is giving oil to the American importer in exchange for U.S.-made computers, without involving any currency transaction. Therefore, it is an example of barter.

A Mexican Firm Has Agreed to Trade Petroleum to an American