A company in Mexico recently agreed to trade coal to an American importer in return for American-made cars. This arrangement is an example of Group of answer choices a nontariff trade. arbitrage. barter. a letter of credit arrangement.

Question

Business

Peyton Downs

30 March, 08:23

A company in Mexico recently agreed to trade coal to an American importer in return for American-made cars. This arrangement is an example of Group of answer choices a nontariff trade. arbitrage. barter. a letter of credit arrangement.

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Answers (1)

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Alisson Morse · Answer 1

barter

Explanation:

Barter system -

In this type of system, there us exchange of goods and commodities, without the use of any monetary value like money, is referred to as barter system.

When money system was not introduced, barter system was used, where people used to exchange the goods depending on the needs of each other.

Barter system is based on the bilateral basis.

Hence, from the given scenario of the question,

The correct term is barter.