alleryStart learning →What is countertrade?
ATrade in which part or all of the payment is in other goods
BTrade in which one country retaliates with matching tariffs
CTrade in which payment is delayed until the goods are resold
DTrade in which two countries agree to balance their exports
Answer & Solution
Correct answer: A. Trade in which part or all of the payment is in other goods
1. International trade does not always involve cash.
2. In countertrade, part or all of the payment for goods or services is in other goods or services.
3. Countertrade is a form of barter, which is the swapping of goods for goods.
4. Barter is an age-old practice traced back to cave dwellers.
5. Retaliatory tariffs and deferred payment terms are different arrangements entirely.
_Source: OpenStax Introduction to Business (CC BY 4.0), Ch 3 "Competing in the Global Marketplace", section 3.6 Participating in the Global Marketplace_
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