Which of the following statements regarding countertrade is false?
A)Items involving large dollar amounts, such as military contracts, are prime candidates for countertrade.
B)Companies can expect countertrade demands from a country when that country's goods may have a low or nondifferentiated perception in the world marketplace.
C)Highly valued items or those sought after by the buying country are less susceptible to countertrade demands.
D)Countertrade may include items that are available from many sources, commodity-type items, or items not perceived as technologically superior or having higher quality compared with other available products.
E)Countertrade is a simple process as it avoids currency exchange fluctuations.

Question

Quizplus · Accepted Answer

Countertrade is a complex process that involves exchanging goods rather than currency. It can be used in situations where currency exchange may be difficult or not desirable, but it is not a simple process. Therefore, statement (E) is false.

Which of the Following Statements Regarding Countertrade Is False