The hypothetical country of Rhodia requires foreign companies that buy and sell Austrica products to use only Rhodia currency in these transactions. Austrica is using _____ as a means of controlling international trade.
A) governmentally granted rights
B) exchange control
C) international currency trading
D) local banks

Question

Quizplus · Accepted Answer

Austrica is using exchange control as a means of controlling international trade by requiring foreign companies to use only Rhodia's currency in transactions involving Austrica products. Exchange control refers to government regulations or policies that limit or regulate foreign exchange transactions within a country, including restrictions on currency conversion and the use of foreign currencies.

The Hypothetical Country of Rhodia Requires Foreign Companies That Buy