Question

Queen Chocolates Inc., a Swiss firm was given permission to sell its products in Spain only if it agreed to take Spanish tomatoes in return. This is an example of _____.

A) bargaining.
B) countervailing trade.
C) buy-back.
D) countertrade.
E) bribery.

Answer 1

The scenario where Queen Chocolates Inc. agrees to trade its chocolates for Spanish tomatoes represents countertrade, a barter-like trading system where goods are exchanged for other goods instead of currency. so, option D is the correct answer.

Step-by-step explanation:

Queen Chocolates Inc., a Swiss firm, was given permission to sell its products in Spain only if it agreed to take Spanish tomatoes in return. This situation is an example of countertrade. Countertrade is a form of international trade in which goods or services are exchanged for other goods or services, rather than for hard currency. This barter-like trade method can be particularly useful in situations where the availability of foreign exchange is limited or when countries want to support bilateral trade relationships.

This is an example of countertrade. Queen Chocolates Inc. agreed to take Spanish tomatoes in return for permission to sell its products in Spain.

This is an example of countertrade. Countertrade refers to a practice where companies agree to exchange goods or services instead of using traditional currency for transactions. In this case, Queen Chocolates Inc. agreed to take Spanish tomatoes in return for permission to sell its products in Spain.