Question

An estimated 40 percent or more of all international trade agreements contain ____provisions which involve bartering for other products instead of for currency.

A) Tariff
B) Quota
C) Countertrade
D) Embargo

Answer 1

At least 40% of international trade agreements include countertrade provisions, allowing direct exchange of goods without the use of currency. The correct answer is option C).

Step-by-step explanation:

An estimated 40 percent or more of all international trade agreements contain countertrade provisions which involve bartering for other products instead of for currency. Those agreements help countries that may have difficulty with currency conversion, or prefer to trade goods directly. The current landscape of trade agreements often contains stipulations for reducing tariffs, import quotas, and nontariff barriers, as seen with entities such as the World Trade Organization (WTO), which evolved from the General Agreement on Tariffs and Trade (GATT).