Recently the Russian subsidiary of PepsiCo needed to import bottling equipment from the United States. However, the Russian government did not allow the
Company to exchange rubles for dollars, so it exported Russian vodka to the
United States to earn enough dollars to import the needed equipment. This would be
An example of _____________________.

Question

Quizplus · Accepted Answer

This is an example of countertrade, which is a type of international trade where goods are exchanged for other goods rather than currency. In this case, PepsiCo's Russian subsidiary exported vodka to earn the dollars needed to import bottling equipment from the US.

Recently the Russian Subsidiary of PepsiCo Needed to Import Bottling