Suppose a communist country agrees to pay for delivery of machinery with goods produced by the machinery.This arrangement refers to:
A) Countertrade
B) International commodity agreements
C) Coproduction agreements
D) Trade diversion

Question

Quizplus · Accepted Answer

This arrangement is known as countertrade, which involves the exchange of goods and services rather than using traditional currency. In this case, the communist country is offering goods produced by the machinery as a form of payment for the delivery of the machinery. Countertrade is often used when traditional forms of payment are not available or desirable, such as in countries with restricted access to foreign currency.

Suppose a Communist Country Agrees to Pay for Delivery of Machinery