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 unsolicited 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 new business development,is exploring how Gro-Tru might meet the needs of the potential market.
-If,in exchange for a hard-currency sale,Gro-Tru agrees to make a hard-currency purchase of an unspecified product from the importing nation in the future,it would be engaging in which of the following?
A)Barter
B)Offset
C)Switch trading
D)Buyback

Question

Quizplus · Accepted Answer

Offset is a trade arrangement where the seller agrees to purchase goods or services from the buyer's country as a condition of the sale, often used to facilitate trade when the buyer has difficulty obtaining hard currency.

Scenario: Gro-Tru Grows to Europe