Question

A drawback of countertrade is that it fails to enable firms to finance an export deal. it is detrimental to the economy of the importing country. developing nations have trouble raising the foreign exchange necessary to pay for imports. it does not allow firms to invest in an in-house trading department dedicated to arranging and managing deals. it may involve the exchange of poor-quality goods that cannot be disposed of profitably.

Answer 1

Answer: it may involve the exchange of poor-quality goods that cannot be disposed of profitably.

Explanation:

Countertrade is a form of trade that typically occurs in international trade when rather than exchanging goods or services for foreign exchange, the goods are being exchanged for another good. It is just like a bartee system.

It should be noted that a disadvantage of this is that it may involve the exchange of poor-quality goods that cannot be disposed of profitably. This is because when a particular country has a low quality good, the counter can use the opportunity to exchange the low quality goods with another country during the counter trade.