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WAEC Commerce 1994 Question 75

Question 75

Foreign Trade

A country resorts to counter trade when

  1. A.it does not belong to any cartel organisation
  2. B.its imports are less than exports
  3. C.it wants to raise domestic production
  4. D.its foreign exchange is not sufficient to pay for imports
  5. E.it desires to be known abroad
Show the answer and explanation

Answer: D (its foreign exchange is not sufficient to pay for imports)

Explanation

Counter trade swaps goods for goods, used when a country lacks foreign exchange.