Final answer:
The correct option is C). The American company's action of accepting goods instead of currency from the government of Taiwan is an example of countertrade, a practice where goods and services are swapped without the use of money. It is different from capital flight, short selling, arbitrage, and carry trade, which are financial maneuvers related to investment and currency management.
Step-by-step explanation:
An American company selling heavy building materials to the government of Taiwan and accepting payment in the form of Taiwanese goods instead of U.S. dollars is an example of countertrade. Countertrade is a type of trade in which goods and services are exchanged for other goods and services, rather than for money. This practice can be beneficial for conducting business when a country's currency is not easily convertible, or when companies wish to support mutual trade relationships.
In contrast, options such as capital flight, short selling, arbitrage, and carry trade refer to different financial concepts. Capital flight indicates the rapid movement of large sums of money or assets out of a country due to economic or political instability. Short selling involves selling securities that one does not own, betting that the price will decline. Arbitrage is the simultaneous purchase and sale of an asset to profit from a difference in the price in different markets. Lastly, the carry trade is a strategy where an investor borrows money at a low-interest rate to invest in assets that provide higher returns.