Which of the following is not a characteristic of bartering internationally ?
Bartering is a type of service export and import.
Barter is the direct exchange of goods for goods without money. In international business it appears as countertrade, which firms use when the partner country is short of hard currency.
Bartering is time-consuming, because finding a partner who wants exactly what you offer and agreeing relative values takes long negotiations.
Bartering can be expensive, as firms may have to hire intermediaries or countertrade specialists to dispose of goods received, and transaction costs are high.
Bartering is risky, since goods received may be of poor quality, hard to sell or fall in value before they can be disposed of.
Barter is an exchange of merchandise, a form of countertrade in goods trade; it is not a type of service export and import. Services trade (tourism, transport, consulting) is a separate category of international business.
Hence, Bartering is a type of service export and import.
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