Scenario: Gro-Tru Grows To Europe
Gro-Tru,a maker of chemical fertilizers and pesticides,sees enormous growth potential in Central Europe.The company has received several unsolicited inquiries from potential importers in the region,but in most cases,the potential importers have expressed difficulty in obtaining the hard currency to pay for Gro-Tru's products.Alistair Green,vice president for new business development,is exploring how Gro-Tru might meet the needs of the potential market.
-Alistair has identified one option that might help the firm: selling goods or services that are paid for in whole or in part with other goods or services.Alistair is considering which of the following?
A)Open trade
B)Pre-purchase
C)Countertrade
D)Counterselling

Question

Quizplus · Accepted Answer

Countertrade is a type of trade where goods or services are exchanged directly for other goods or services, instead of using currency. In this scenario, potential importers in Central Europe are expressing difficulty in obtaining hard currency to pay for Gro-Tru's products. By using countertrade, Gro-Tru can sell their products to these importers and receive goods or services in exchange. This would enable the importers to obtain Gro-Tru's products without having to worry about currency constraints, which would make it more likely that they would be able to afford and purchase the products. Therefore, C) Countertrade is the best option in this scenario.

Scenario: Gro-Tru Grows to Europe