Which of the following is an advantage of countertrade?
A) Countertrade uses instruments such as time draft and sight draft.
B) It is an effective way of doing business with developing nations.
C) It provides exporters and opportunity to obtain direct revenue.
D) Countertrade prevents exchange of unusable or poor-quality goods.

Question

Quizplus · Accepted Answer

Countertrade's main attraction is that it can give a firm a way to finance an export deal when other means are not available. Given the problems that many developing nations have in raising the foreign exchange necessary to pay for imports, countertrade may be the only option available when doing business in these countries.

Which of the Following Is an Advantage of Countertrade