Countertrade is least attractive to large, diverse multinational enterprises.

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What is a disadvantage of countertrade?

A major drawback of countertrade is that the value proposition may be uncertain, particularly in cases where the goods being exchanged have significant price volatility. Other disadvantages of countertrade include complex negotiations, potentially higher costs and logistical issues.

What is a disadvantage of countertrade quizlet?

Countertrade Disadvantages. may involve the exchange of unusable or poor quaility goods and requires the firm to establish an in-house trading department to handle countertrade trades.

What is a characteristic of countertrade?

The common characteristic of counter- trade arrangements is that export sales to a particular market are made conditional upon undertakings to accept imports from that market. For example, an exporter may sell machinery to country X on condition that he accepts agricultural products from X in payment.

Which statement is true of countertrade?

Which of the following statements is true of countertrade? Countertrade occurs when goods and services are traded for other goods and services.