Countertrade occurs when the
A)exporter may not be paid in his or her home currency due to nonconvertibility.
B)exporter can convert the currency only in U.S.dollars.
C)exporter is dealing with a country that has huge foreign reserves.
D)exporter has easy access to export credit to fund its international trade.
E)importer defaults on payment.

Question

Quizplus · Accepted Answer

Countertrade is a transaction in which goods and services are exchanged for other goods and services instead of money. It typically occurs in situations where the importer may not have sufficient foreign exchange to pay for the imports, or the exporter may not be able to convert the currency received into their home currency due to restrictions on convertibility. Therefore, option A is the correct choice.

Countertrade Occurs When the