Question

One drawback of countertrade is that it Multiple Choice is not an option when doing business in developing countries. may involve the exchange of poor-quality goods that the firm cannot dispose of profitably. fails to give firms a way to finance an export deal. is detrimental to the economy of the exporting country. is only successful for large companies.

Answer 1

may involve the exchange of poor-quality goods that the firm cannot dispose of profitably.

Step-by-step explanation:

Countertrade occurs when countries exchange one set of goods and services for another. It does not involve hard currency.

This is common among developing countries where there is limited access to foreign exchange.

There are 3 components of countertrade: barter, counterpurchase, and offset.

It is an avenue by which countries with limited resources get what they need. Also it provides markets for local industries.

However since the goods are not properly priced counties may exchange poor-quality goods that the firm cannot dispose of profitably.