A U.S. agricultural producer sells wheat to a small country in Africa. The country pays the U.S. firm in seafood. This is an example of _____.

Question

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Countertrade is the exchange of goods and services between two countries using non-monetary means of payment. In this case, the U.S. agricultural producer is being paid in seafood instead of cash, which is an example of countertrade. Direct exporting involves selling goods directly to a foreign buyer and receiving payment in cash or a credit transaction. Foreign licensing involves allowing a foreign company to use a firm's intellectual property for a fee or royalty. International production involves a firm setting up production facilities or operations in a foreign country. None of these options apply to the scenario given.

A US Agricultural Producer Sells Wheat to a Small Country in in Africa