When a firm agrees to purchase a certain amount of materials back from a country to which a sale is made,it is called:
A) barter
B) counter-purchase
C) offset
D) switch trading
E) buybacks

Question

Quizplus · Accepted Answer

Counter-purchase refers to an agreement where a firm agrees to purchase a certain amount of materials back from a country to which a sale is made. This is often used to overcome trade barriers or to facilitate entry into foreign markets. Barter refers to the exchange of goods or services without the use of money. Offset refers to the requirement that a certain percentage of the value of a sale to a foreign country be used to purchase goods or services from that country. Switch trading refers to the use of a third party to facilitate the exchange of goods or services. Buybacks refer to an agreement where a firm agrees to repurchase goods that it previously sold to a foreign country.

When a Firm Agrees to Purchase a Certain Amount of Materials