Question

Maldavia wants to purchase missiles from Grenada, an ally. Rather than pay for the missiles, Maldavia provides Grenada with chromium-coated steel alloys used in making the missiles. What type of international trade does this represent? A. free-trade agreement B. countertrade C. free-trade zone D. monopolistic competitionWhich global business risk involves forcing overseas countries to cede partial control of their businesses to local investors or authorities? A. trade sanction B. expropriation C. economic nationalism D. trade embargo

Answer 1

The type of international trade represented is B. countertrade, and the global business risk involved is B. expropriation.

Step-by-step explanation:

The type of international trade represented in this scenario is countertrade. Countertrade refers to the practice of exchanging goods or services rather than using money as a means of payment. In this case, Maldavia is providing Grenada with chromium-coated steel alloys in exchange for the missiles, instead of paying for them directly.

The global business risk that involves forcing overseas countries to cede partial control of their businesses to local investors or authorities is called expropriation. Expropriation occurs when a government seizes or takes control of foreign assets or properties, often with compensation. It is a risk that companies face when operating in foreign markets.