In switch trading, a third party is involved which uses the credits to buy goods from
the deficit country.

Question

Quizplus · Accepted Answer

This statement is true. In switch trading, a third party acts as a mediator between the two countries and uses the credits accrued by the surplus country to purchase goods or services from the deficit country. This helps to balance out the trade deficit and promotes economic growth for both countries involved.

In Switch Trading, a Third Party Is Involved Which Uses