Tahitian pearl market might never have existed were it not for Salvador Assael,the "pearl king" of the South Seas.Assael got into the pearl business at the end of World War II.Tahiti had thousands of Swiss watches but suddenly had no GIs to buy them.Assael observed that the Japanese were desperate for watches but had no cash,and also,that the Japanese still had a pearl industry.So,Assael oversaw the swapping of watches for pearls,which were then sold to the Australian and U.S.markets.This international barter is an example of
A) a reciprocity agreement.
B) balance of trade.
C) cross-cultural commerce.
D) countertrade.
E) a trade feedback effect.

Question

Quizplus · Accepted Answer

The situation described in the passage is an example of countertrade, which involves the exchange of goods and services instead of currency. In this case, watches were exchanged for pearls, which were then sold in other markets.

Tahitian Pearl Market Might Never Have Existed Were It Not