The former USSR received technology and syrup from Pepsi and provided it with Soviet vodka and rights to distribute it in the US. This is an example of:
Options:
A. Economic development B. Balance of payment C. Barter system D. International trade |
The Correct Answer Is:
C. Barter system
Correct Answer Explanation: C. Barter system
The correct answer is C. Barter system. The scenario described involves a barter agreement between the former USSR and Pepsi, where goods and services are exchanged directly without the use of money.
In this case, Pepsi provided technology and syrup, and in return, the USSR provided Soviet vodka and distribution rights in the US. This type of transaction is characteristic of a barter system, where the parties involved swap goods or services for mutual benefit.
The barter system is an ancient method of trade that predates the use of money. It involves the direct exchange of goods and services between two parties. In the case of the former USSR and Pepsi, this arrangement allowed both parties to acquire desired products without the need for currency.
Pepsi gained access to Soviet vodka and distribution rights in the US, while the USSR acquired technology and syrup.
Now, let’s explore why the other options are not correct:
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