Which of the following is a drawback of countertrade?
A)It fails to give firms a way to finance an export deal.
B)It is detrimental to the economy of the importing country.
C)Developing nations may have trouble raising the foreign exchange necessary to pay for imports.
D)It requires the firm to invest in an in-house trading department dedicated to arranging and managing deals.

Question

Quizplus · Accepted Answer

Countertrade contracts may involve the exchange of unusable or poor-quality goods that the firm cannot dispose of profitably.Even if the goods it receives are of high quality,the firm still needs to dispose of them profitably.To do this,countertrade requires the firm to invest in an in-house trading department dedicated to arranging and managing countertrade deals,which can be expensive and time-consuming.

Which of the Following Is a Drawback of Countertrade