Full-Sole Shoes concludes a counterpurchase agreement with Japan for which it receives some counterpurchase credits. Full-Sole Shoes does not want any foreign goods, however, so it sells the credits to a third-party trading house at a discount. The trading house finds a firm that can use the credits and sells them at a profit. This is an example of
A) barter.
B) switch trading.
C) an offset.
D) a buyback.
E) compensation.

Question

Quizplus · Accepted Answer

Switch trading involves selling counterpurchase credits to a third party, which then finds a buyer for those credits, as described in the scenario.

Full-Sole Shoes Concludes a Counterpurchase Agreement with Japan for Which