Countertrade is an alternative means of structuring an international sale when ________.
A)natural resources are highly desirable
B)an importer is able to obtain a bank loan
C)an importer does not belong to the World Bank
D)conventional forms of payment are difficult, costly, or nonexistent

Question

Quizplus · Accepted Answer

Countertrade is used when conventional forms of payment are difficult, costly, or nonexistent. It involves exchanging goods or services instead of using currency for payment. This may be necessary in situations where the importing country has a shortage of foreign currency or is subject to economic sanctions. Natural resources being highly desirable or the importer's ability to obtain a bank loan are not the main factors that necessitate the use of countertrade. Similarly, belonging to the World Bank is not relevant to the use of countertrade.

Countertrade Is an Alternative Means of Structuring an International Sale