Explore BrainMass

Engaging in the Countertrade

This content was STOLEN from BrainMass.com - View the original, and get the already-completed solution here!

1.What type of firm is most likely to engage in countertrade? Why?
2.When does concentration of production make sense?
Use a Reference for each in APA style

© BrainMass Inc. brainmass.com October 25, 2018, 8:44 am ad1c9bdddf

Solution Preview

1. One type of firm that would be most likely to engage in countertrade would be an oil production firm, the is due to the fact that oil is a very valuable commodity on the world market. Due to the fact that oil is a valuable commodity on the world market, these types of firms have engaged in countertrade for other goods and services with other firms or nations that have natural resources or goods and services that they are in need of. An example of this would be the trade of oil for food that has been conducted by some middle eastern nations, with other firms and or nations that are the producers of wheat and other necessities. Due to this factor food production firms are also very likely to engage in countertrade, ...

See Also This Related BrainMass Solution

Global Financing and Exchange Rate Mechanisms

Describe how COUNTERTRADE is used in global financing, and its importance in managing risks.

View Full Posting Details