Game Guys, Inc. needed a special silicon substrate. The company executives knew that a new start-up in India, Silicon Sisters, Inc., was the best in the world at efficiently mass-producing the product. The Indian company needed MSG (metallurgical grade silicon) in order to make the substrate, which it knew it could get from a Chinese firm. The Chinese firm (mostly owned by the Chinese government) agreed to supply the silicon to Silicon Sisters if it could get a certain quantity of gaming hardware from Game Guys. This beneficial exchange is described as countertrading.

Question

Business

Francis Dalton

23 August, 14:31

Game Guys, Inc. needed a special silicon substrate. The company executives knew that a new start-up in India, Silicon Sisters, Inc., was the best in the world at efficiently mass-producing the product. The Indian company needed MSG (metallurgical grade silicon) in order to make the substrate, which it knew it could get from a Chinese firm. The Chinese firm (mostly owned by the Chinese government) agreed to supply the silicon to Silicon Sisters if it could get a certain quantity of gaming hardware from Game Guys. This beneficial exchange is described as countertrading.

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Tango · Answer 1

The given statement is TRUE.

Explanation:

Counter-trading is the trade without money of products and services. It's a kind of bartering.

Counter-trade involves the exchange with other products or services, wholly or partially part, instead of money, of products or services. Nevertheless, a numerical value may be used for billing purposes in competitive trading. The word bilateral trade is often used in interactions between sovereign countries.

Enable trade in nations which can not pay for imports. This may occur, for example, from a lack of foreign exchange or commercial credit. Support the search for new export industries or boost domestic industry performance.