Question : 111.Which of the following true of countertrade? A. The governments of : 1299466

111.Which of the following is true of countertrade?  

A. The governments of developing nations sometimes insist on a certain amount of countertrade.

B. Countertrade is a means of structuring an international sale when conventional means of payment are cost-effective.

C. Nonconvertibility is an advantage for exporters.

D. Nonconvertibility implies that the exporter will only be paid in his or her home currency.

E. Most exporters desire payment in a currency that is not convertible.

112.Which of the following is a distinct type of countertrade arrangement?  

A. Merger

B. Arbitrage

C. Dirty float

D. Barter

E. Deregulation

113.The direct exchange of goods and/or services between two parties without a cash transaction is referred to as _____.  

A. switch trading

B. counterpurchase

C. barter

D. offset

E. buyback

114.Which of the following types of countertrade is the simplest, although not common?  

A. Switch trading

B. Counterpurchase

C. Barter

D. Offset

E. Buyback

115.The most restrictive countertrade arrangement is _____ because if goods are not exchanged simultaneously, one party ends up financing the other for a period.  

A. counterpurchase

B. offset

C. barter

D. switch trading

E. buyback

116.Which of the following is true of barter as a countertrade arrangement?  

A. It is a very complex arrangement.

B. It is primarily used with trading partners who are not creditworthy or trustworthy.

C. It involves cash transactions.

D. When goods are exchanged simultaneously, one partner ends up financing the other.

E. It is the most flexible countertrade arrangement.

117.Which of the following is a disadvantage of barter as a countertrade arrangement? 

A. It is a very complex arrangement.

B. In a barter system, if goods are exchanged simultaneously, one party ends up financing the other.

C. Firms engaged in barter run the risk of having to accept goods they do not want or cannot use.

D. It involves huge cash transactions.

E. It cannot be used in transactions with trading partners who are not creditworthy.

118.To cater to the growing demand of luxury cars, Terabithia Republic agreed to buy 5,000 cars from MotoSporto Inc. in exchange for 5,000 gallons of oil. Due to a lack of trust, Terabithia decided to make it a one-time-only deal. Which of the following forms of countertrade is the country most likely to use? 

A. Counterpurchase

B. Offset

C. Switch trading

D. Barter

E. Buyback

119.Which of the following is true of counterpurchase?  

A. It is the most restrictive countertrade arrangement.

B. It is a reciprocal buying agreement.

C. It is the simplest countertrade arrangement.

D. It uses a specialized third-party trading house.

E. It is the direct exchange of goods without a cash transaction.

120._____, a type of countertrade, occurs when a firm agrees to purchase a certain amount of materials back from a country to which a sale is made.  

A. Barter

B. Counterpurchase

C. Compensation

D. Switch trading

E. Buyback