Question

A typical countertrade exchange would involve a seller from a developed, industrialized, country and a buyer from a developing country where hard currency is scarce and tightly controlled by national institutions.

Answer 1

A countertrade exchange involves a seller from a developed country and a buyer from a developing country where hard currency is scarce and tightly controlled. Payment is made through an exchange of goods or services rather than cash.

Step-by-step explanation:

A countertrade exchange involves a seller from a developed country and a buyer from a developing country where hard currency is scarce and tightly controlled. In this type of exchange, the buyer may not have enough hard currency to purchase goods or services directly from the seller, so they enter into a countertrade agreement where payment is made through an exchange of goods or services rather than cash.

For example, a seller from a developed country may agree to sell machinery to a buyer from a developing country in exchange for agricultural products or natural resources. This allows the buyer to acquire the machinery they need without using hard currency, and the seller can benefit from obtaining goods that they may not have easy access to in their own country.