Scenario: Wang's Techno Toys
Ann Wang has been successfully running Wang's Techno Toys that sells high-tech toys in the domestic market. Continually increasing and stiff competition at home has now forced Wang's Techno Toys to enter international markets through direct exports.
-In some countries,people exchange electronic goods for Techno Toys instead of paying money for them.This practice is known as ________.
A) offset
B) counterpurchase
C) switch trading
D) barter

Question

Quizplus · Accepted Answer

Barter is the exchange of goods or services without the use of money. In this scenario, people exchange electronic goods for Techno Toys instead of paying money, which is an example of barter. Offset refers to a practice where a country agrees to purchase products from another country as a part of a larger offset agreement. Counterpurchase involves an agreement where a seller agrees to buy goods or services from the buyer's country in exchange for the original sale. Switch trading is a practice where a third party acts as a mediator between two trading partners and allows them to exchange goods or services without any monetary transactions. None of these options fit the scenario as well as barter does.