Question

20. A country with a surplus of oil but limited access to fresh water decides to trade resources with a country w

exchange these resources without any money involved. This exchange of products is best described as
O A. countertrading.
O B. mutual import.
O C. dual export.
O D. resource

Answer 1

The correct answer is A. This exchange of products is best described as countertrading.

Step-by-step explanation:

In international trade, countertrading is the process by which countries trade with each other through the exchange of products, as in barter, and not through the use of money to pay for such goods or services. That is, a country gives a series of goods that another country needs, in exchange for goods that said country produces and it does not have.

This type of international trade has the advantage of not altering the trade balance of nations, which remains neutral given that both countries deliver goods valued equally. Thus, fair and equitable trade is reached, although not always possible since the needs of one party do not always match those of the other.