This compensation arrangement is a form of countertrade whereby one party agrees to supply technology or equipment that enables the other party to produce goods that are then used to repay the price of the supplied technology or equipment.
A) Boycott
B) Collateral
C) Toggle switch
D) Buyback

Question

Quizplus · Accepted Answer

The compensation arrangement described in the statement is called a buyback agreement. Countertrade refers to the practice of exchanging goods and services instead of using money for payment. In a buyback arrangement, one party supplies technology or equipment, and the other party uses it to produce goods to repay the price of those supplies.

This Compensation Arrangement Is a Form of Countertrade Whereby One