Counter-Trade

Counter-trade involves a linkage between ______ and import of goods or services.

• sale

• production

• export

• payment

In counter-trade, goods or services are exchanged for other ______ or services instead of money.

• currencies

• licenses

• goods

• investments

Monetary valuation in counter-trade is mainly used for ______ purposes.

• legal

• accounting

• customs

• security

Counter-traders focus more on the ______ value than the exchange value of goods.

• import

• use

• monetary

• resale

Counter-trade requires balance in value, weight, delivery terms, and ______ value.

• insurance

• exchange

• resale

• tax

Which of the following is not a feature of counter-trade?

• Exporters are also importers

• Money is used for physical settlement

• Balance in delivery terms is required

• Use value is prioritized

Which of the following is true about counter-trade?

• It eliminates the need for goods valuation

• Exporters only send goods, do not import

• It includes both export and import in one transaction

• All counter-trade involves switch trading

Counter-trade develops due to:

• High availability of foreign currency

• Lack of acceptability of money

• Monetary inflation

• Trade deregulation

Which is not a reason for the development of counter-trade?

• Lack of faith in money

• Maintaining trade imbalances

• Competitive advantage

• Entry into new markets

One reason traders use counter-trade is to:

• Minimize market access

• Gain competitive advantage

• Increase currency reserves

• Avoid any goods transaction