Which one of the following is NOT a true economic rationale for countertrade?
A)many Third World countries use countertrade to conserve what little foreign exchange they have
B)the goods taken in countertrade are usually the least difficult to market
C)countertrade enables members of cartels such as OPEC to undercut an agreed-upon price without formally doing so
D)the trade may circumvent tariffs

Question

Quizplus · Accepted Answer

Countertrade is a practice in which countries exchange goods or services without using cash. The economic rationales for countertrade include (A) conserving foreign exchange, (C) avoiding formal violation of price agreements, and (D) circumventing tariffs. However, the goods taken in countertrade are often difficult to market because they may be of lower quality or not in demand in the receiving country. Therefore, option B is not a true economic rationale for countertrade.

Which One of the Following Is NOT a True Economic