course hero the drawbacks of countertrading include which of the following?

Which of the following is a drawback of countertrade?

A drawback of countertrade is that: it may involve the exchange of poor-quality goods that cannot be disposed of profitably.

What are the benefits and drawbacks for both parties that engage in Countertrading?

Bartering is the oldest countertrade arrangement. A major benefit of countertrade is that it facilitates the conservation of foreign currency. Common disadvantages of countertrade are complex negotiations, higher costs, and logistical issues.

What is considered the most restrictive form of countertrade?

The most restrictive countertrade arrangement. Used primarily for one-time-only deals in transactions with trading partners who are not creditworthy or trustworthy. A reciprocal buying agreement. It may involve the trade of some poor quality or unusable goods, that the firm cannot dispose of profitably.Aug 27, 2020

What is an advantage of having a letter of credit quizlet?

What is an advantage of having a letter of credit? It facilitates an exporter to obtain preexport financing. the international market is much larger than the domestic market.

What is a disadvantage of countertrade quizlet?

Countertrade Disadvantages. may involve the exchange of unusable or poor quaility goods and requires the firm to establish an in-house trading department to handle countertrade trades.

What are the major challenges a company involved in Countertrading faces?

Some other disadvantages include:The time-consuming nature. ... Negotiation complexity. ... Higher transaction costs (including brokerage, for instance). ... Logistical issues, especially if commodities are involved.Greater uncertainty on the value of the goods being traded and uncertainty on the quality of the goods.Mar 12, 2021

What is a disadvantage of relying on an export management company?

trust. What is a disadvantage of relying on an export management company (EMC)? A firm will fail to develop its own exporting capabilities.

Which three factors are considered pitfalls of exporting?

Common Pitfalls With Importing and ExportingLack of Knowledge on Exchange Rates. ... Lousy Relationship With Customs Officials. ... Making a Bribe. ... Being Clueless About Import Restrictions or Control on a Product. ... Failure to Conform to Packaging, Marking, and Language (Localization) Laws.More items...•Mar 11, 2019

What three impediments would make it difficult for some companies to gain knowledge of opportunities available in foreign countries?

Tariffs, quotas, and non-tariff barriers lead too few of the economy's resources being used to produce tradeable goods. An export subsidy can also be used to give an advantage to a domestic producer over a foreign producer.

Which of the following is a disadvantage of the international business strategy of licensing quizlet?

Which of the following is a disadvantage of the international business strategy of licensing? The profits of a firm using this strategy are limited to those it receives from royalty payments.

What is an advantage of having a letter of credit?

Advantages of a letter of credit: Provides security for both seller and buyer. Issuing bank assumes the ultimate financial responsibility of the buyer. Guaranteed payment allows the seller to borrow against the full receivable value of the transaction from the lender.Nov 15, 2021

Which of the following is a drawback of licensing as a mode of entry into foreign markets?

Which of the following is a drawback of licensing as a mode of entry into foreign markets? B. Licensing does not give a firm tight control over manufacturing, marketing, and strategy.