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WorksheetsCounter-Trade
Total questions: 25
Worksheet time: 13mins
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
Counter-trade where goods are exchanged without using money is called:
Buyback
Offset
Barter
Counter-purchase
A future purchase commitment in exchange for goods sold today is called:
Barter
Counter-purchase
Offset
Switch trading
When suppliers are paid with future output of their investment, this is:
Switch trading
Barter
Buyback
Offset
An agreement to assemble products in the buyer’s country refers to:
Buyback
Counter-purchase
Offset
Barter
When a country transfers its purchase obligation to another, this is:
Buyback
Offset
Switch trading
Barter
The transaction between Thailand and China trading fruits for buses is an example of:
Counter-purchase
Buyback
Offset
Barter
Japan setting up a car factory in Laos and receiving part of the output is:
Buyback
Barter
Offset
Switch trading
The trade between Congo and China exchanging computers for metals is:
Switch trading
Offset
Counter-purchase
Barter
Which of the following is not associated with offset transactions?
Assembling in buyer’s country
Commitment to purchase future goods
Buying components locally
Sale of raw materials by the buyer
In switch trading, which country sells its obligation?
The buyer
A third country
The exporter
The importer
How many main types of counter-trade are listed in the classification?
3
4
5
6
Counter-trade is similar in nature to which of the following?
Import quotas
Re-exportation
Licensing
Domestic sales
Which of the following does not relate to counter-trade?
Switch trading
Offset
Export subsidy
Buyback
All the following are true except:
Counter-trade helps maintain trade balance
Counter-trade eliminates any need for monetary valuation
Counter-traders focus on use value
Counter-trade may provide market entry
Which of the following is correct?
Counter-trade uses money as the primary form of settlement
Counter-purchase involves assembling in buyer’s country
Buyback uses future outputs as payment
Barter involves future obligations
