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quizlet over the last two years, an american clothing company has partnered with a manufacturer in china to make clothes at a cheaper cost. how is this mutually beneficial?

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ashwinvt ashwinvt

Today at 11:41 PM

The partnership between the American Clothing Company and the Chinese Manufacturer benefits both parties since it is an example of counter-trading.

What is counter-trading?

When products or services are swapped for other goods or services rather than for cash, this is known as counter-trading. It is a sort of reciprocal international commerce where, for instance, the Chinese Manufacturer contributes low-cost labor and other resources while the American Clothing Company contributes its technology.

Counter-trade agreements share the common trait that export sales to a specific market are contingent upon commitments to accept imports into that market. For instance, an exporter may agree to sell nation X machinery in exchange for accepting agricultural products from X as payment.

Learn more about counter trading, here:

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