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Q. Define countertrade. Discuss the different forms of countertrade?
Counter trade means all types of foreign trade in which the sale of goods to another country is associated with parallel purchase of some other goods from that country The different forms of counter are : Barter Buy back counter purchase.
Q. What are the main functions of money? Answer: Money serves generally three important functions that are a unit of account, a medium of exchange and a store of value.
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Question : (a) Differentiate between Transaction, economic risk and Translation risk in foreign exchange market. (use an illustrative and numerical example in each case. (b)
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