Question

In the late 1970s, LarceCo, a tea seller, entered the Russian marketplace. LarceCo traded tea-based products for Russian-made vodka because of the lack of a tradable currency in the Soviet Union. This is an example of _____.

Answer 1

Answer:

It is an example of countertrade.

Explanation:

Countertrade describes the process of exchanging services and goods with other services and goods instead of using hard currency or tradable currency.  This form of trade is peculiar to developing countries that have limited credit facilities or foreign exchange. It is also adopted by companies to satisfy the needs of their customers who don't have access to credit or hard currency.