Which of the following is a drawback of a countertrade agreement? A.

QUESTION

Which of the following is a drawback of a countertrade agreement?

A. It fails to give firms a way to finance an export deal.

B. It requires an in-house trading department to be maintained, which can be expensive and time-consuming.

C. It is detrimental to the economy of the importing country.

D. Developing nations may have trouble raising the foreign exchange necessary to pay for imports.

E. It is not an acceptable means of trading in most developing countries.

ANSWER

B