Which of the following is true of counterpurchase?
A)It is the most restrictive countertrade arrangement.
B)It is a reciprocal buying agreement.
C)It is the simplest countertrade arrangement.
D)It uses a specialized third-party trading house.
E)It is the direct exchange of goods without a cash transaction.

Question

Quizplus · Accepted Answer

Counterpurchase is a reciprocal buying agreement in which a firm agrees to purchase products from a country as long as that country agrees to buy products from the same firm in the future. This arrangement is less restrictive than other types of countertrade, such as offset or buyback, which require the transfer of technology or specific production levels. However, it still involves a trade of goods rather than cash. Counterpurchases are often used in industries such as aerospace and defense, where governments may require reciprocal purchases to balance sales and imports.

Which of the Following Is True of Counterpurchase