Question

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

Answer 1

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 counter-trade.

Answer: Option B

Explanation:

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.