Identify a drawback of a countertrade agreement.
A) It fails to give firms a way to finance an export deal.
B) It requires an in-house trading department to be maintained, which can be expensive and time-consuming.
C) It is detrimental to the economy of the importing country.
D) Developing nations may have trouble raising the foreign exchange necessary to pay for imports.
E) It is not an acceptable means of trading in most developing countries.

Question

Quizplus · Accepted Answer

Countertrade agreements often require companies to maintain an in-house trading department to manage the complex transactions, which can be costly and time-consuming.

Identify a Drawback of a Countertrade Agreement