Countertrade is
A. illegal in the U.S.
B. found only in planned economies
C. a transaction that may not involve an exchange of money
D. found only in subsistence economies
E. Both (B) and (D) are true
Answer: (C) Countertrade is a form of market exchange in international business that need not involve the use of money. Bartering is the oldest and simplest form of countertrade. Therefore, (C) is the right choice. Countertrade is definitely not an illegal activity in the U.S. (A). It is practiced in planned as well as market-oriented economies, so (B) is false. (D) is false because subsistence economies are by definition self-sufficient so they do not engage in any form of trade. Finally, (E) is false since it claims that both (B) and (D) are true.