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If a country's currency drops dramatically and it is unable to import the goods it needs, then an exporter who trades with that country may turn to countertrading. True or False?

User Meteorite
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True, when a country's currency devalues and it can't import necessary goods, exporters may resort to countertrading, the exchange of goods for goods instead of using currency.

True, if a country's currency drops dramatically and it is unable to import the goods it needs, an exporter who trades with that country may indeed turn to countertrading. Countertrading involves the exchange of goods and services for other goods and services when currency is not used as a medium of exchange. This method of trade can be particularly useful in situations where the importer's currency has depreciated and they cannot afford to purchase goods using their weakened currency. In such scenarios, countertrading provides an alternative that allows trade to continue albeit in a non-traditional manner. It is a strategy often used during times of economic difficulty or when facing trade and financial constraints.

User Scott Christopher
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