Scenario: Gro-Tru Grows To Europe
Gro-Tru, a maker of chemical fertilizers and pesticides, sees enormous growth potential in Central Europe. The company has received several inquiries from potential importers in the region, but in most cases, the potential importers have expressed difficulty in obtaining the hard currency to pay for Gro-Tru's products. Alistair Green, vice-president for business development, is exploring how Gro-Tru can meet the needs of the potential market.
-In his research,Alistair discovers a type of arrangement in which industrial equipment is exported in return for products produced by that equipment.This arrangement is known as ________.
A) barter
B) offset
C) switch trading
D) buyback

Question

Quizplus · Accepted Answer

The arrangement described is known as "buyback," where a company exports industrial equipment and in return receives products produced by that equipment. This is a common practice in international trade to facilitate transactions when hard currency is difficult to obtain.

Scenario: Gro-Tru Grows to Europe