Which of the following is true of barter as a countertrade arrangement?
A)It is a very complex arrangement.
B)It is primarily used with trading partners who are not creditworthy or trustworthy.
C)It involves cash transactions.
D)When goods are exchanged simultaneously,one partner ends up financing the other.
E)It is the most flexible countertrade arrangement.

Question

Quizplus · Accepted Answer

Barter is primarily used with trading partners who are not creditworthy or trustworthy, as it involves the direct exchange of goods without the use of currency or credit. It can be a simpler alternative to other countertrade arrangements, but it still requires careful coordination and negotiation between partners. While it may not involve cash transactions, it can still involve financing and credit terms. It is not necessarily the most flexible countertrade arrangement, as there are other options such as offset or buyback which may offer more flexibility in terms of payment and timing.

Which of the Following Is True of Barter as a Countertrade