Which of the following is an advantage of countertrade?
A) The cash that the seller receives upon selling received goods is always more than expected.
B) It can help a firm get a foothold in new markets, leading to new customer relationships.
C) It is simple, easy, and time-saving because deals are easily agreed upon.
D) It is a high-control strategy that requires substantial resource commitment when compared to an equity joint venture.

Question

Quizplus · Accepted Answer

Countertrade can help a firm establish relationships with new customers and gain a foothold in new markets, which can be beneficial in the long run. However, it is not always simple or time-saving, and the cash that the seller receives may not always be more than expected. Additionally, countertrade may not necessarily require a higher resource commitment than an equity joint venture, as both strategies can require significant investments.

Which of the Following Is an Advantage of Countertrade