Volvo of North America delivered automobiles to the Siberian police force when Siberia had no cash to pay for them. It accepted
payment in oil, which it then sold for cash to pay for media advertising in the U.S. This is an example of __________. a) predatory pricing
b) countertrade
c) cross-cultural exchange
d) economic adaptation
e) Trade feedback
The Volvo of North America delivered automobile to the Siberian police force when Siberia had no cash to pay for them. It accepted by the payment in oil, which it then sold for cash to pay for media advertising in the U.S. example of <u>counter-trade</u>.
Answer: Option B
<u>Explanation:</u>
The word counter trade means it is an exchange goods or services which are paid for wholly or partly with other goods or services either than with money. However, counter trade used for accounting purposes. In this case counter trade deals between sovereign states.
b. accounts for a significant portion of the U.S.'s economic output
Explanation:
The U.S economy is an economy where the main economic activity is the provision of the services rather than the manufacturing of goods and based on the growth of the services. And it accounts for a large shares of the U.S economic output of trade and commerce.
