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JAMB Economics 1997 Question 47

Question 47

International Trade

Counter trading is an international arrangement whereby

  1. A.goods and services are exchanged in a manner similar to barter
  2. B.goods and services are sold on the counter
  3. C.crude oil is sold to a foreign country
  4. D.goods are shipped to countries on which the United Nations has placed a trade embargo.
Show the answer and explanation

Answer: A (goods and services are exchanged in a manner similar to barter)

Explanation

In counter trade, countries swap goods for goods (for example crude oil for machinery) instead of paying cash, like barter.