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A Drawback of Countertrade Is That

Question 29

Multiple Choice

A drawback of countertrade is that


A) it fails to enable firms to finance an export deal.
B) it is detrimental to the economy of the importing country.
C) developing nations have trouble raising the foreign exchange necessary to pay for imports.
D) it does not allow firms to invest in an in-house trading department dedicated to arranging and managing deals.
E) it may involve the exchange of poor-quality goods that cannot be disposed of profitably.

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