Malaysia supplied India with palm oil (from six state-owned companies) worth $121 million in exchange for a contract awarded to the Indian Railway Construction International Company. It will lay 31.5 kilometres of tracks in the southern Malaysian state of Johor. Which of the following will give India palm oil and Malaysia new rail lines?
A)export trade
B)crossdock plan
C)countertrade
D)domestic barter

Question

Quizplus · Accepted Answer

Countertrade involves the exchange of goods or services for other goods or services instead of cash. In this case, Malaysia is supplying palm oil to India in exchange for the construction of new rail lines in Johor. This type of trade is beneficial for both countries as it promotes trade relationships and helps them overcome any currency or financial barriers.

Malaysia Supplied India with Palm Oil (From Six State-Owned Companies)