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 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 business development, is exploring how Gro-Tru can meet the needs of the potential market.
-Which of the following methods would Gro-Tru be implementing if it exchanges its products directly for other goods or services without the use of money?
A) barter
B) offset
C) switch trading
D) buyback

Question

Quizplus · Accepted Answer

Barter involves the direct exchange of goods and services without the use of money. If Gro-Tru exchanges its products directly for other goods or services, it would be implementing a barter system. This could be a useful method for the company to overcome the potential importer's difficulty in obtaining hard currency to pay for Gro-Tru's products. Offset and switch trading both involve the use of money or financial instruments, while buyback refers to a company buying back its own products.

Scenario: Gro-Tru Grows to Europe