Japan is experiencing a rubber shortage but does not have the cash available to purchase the rubber from Germany. After negotiating, it agrees to pay for 40 percent of the rubber with cash and the remaining amount with computer equipment. This example best represents the concept of

Question

Quizplus · Accepted Answer

This example best represents countertrading, where goods are exchanged for other goods instead of for currency. Japan is paying for part of the rubber with computer equipment instead of cash.

Japan Is Experiencing a Rubber Shortage but Does Not Have