Which of the following is a form of countertrade in which industrial compensation is mandated by governments when purchasing defense-related goods and services in order to counterbalance the effect of the purchase on the balance of payment?
A) Open account
B) Risk factor
C) Procurement
D) Offset

Question

Quizplus · Accepted Answer

The given description fits the concept of an offset. An offset is a type of countertrade where the government of the importing country mandates a specific amount of industrial compensation to be met by the exporter in the form of local production or investment, in order to balance out the impact of the import on the country's balance of payments. Option A refers to a type of trade where goods are shipped and delivered before payment is due, while option B is a measure of the likelihood of financial loss. Option C refers to the process of acquiring goods and services, but it is not specific to defense-related procurement. Therefore, option D is the correct answer.

Which of the Following Is a Form of Countertrade in Which