A manufacturing facility in a Mexico was unable to afford the products it needs from an American supplier because Mexico's currency dropped dramatically. To acquire the parts needed to produce its products, the Mexican facility bartered with several companies in Texas, offering completed goods for parts. This direct exchange of goods for goods is known as countertrading.

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Business

Sabrina Leach

1 July, 00:06

A manufacturing facility in a Mexico was unable to afford the products it needs from an American supplier because Mexico's currency dropped dramatically. To acquire the parts needed to produce its products, the Mexican facility bartered with several companies in Texas, offering completed goods for parts. This direct exchange of goods for goods is known as countertrading.

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Francisco Hunter · Answer 1

The correct answer is True.

Explanation:

The countertrading is defined as an operation in which it is agreed, together with the sale and collection in foreign currencies of the export, the commitment for the exporter to acquire goods from the importing country within a certain period of time. It is carried out in two different contracts and there is no need for a balance of monetary values between operations. It has become the most extended class within the compensation modalities.