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.
-Gro-Tru would be engaging in ________,if it decides that in exchange for a hard-currency sale it would make a hard-currency purchase of an unspecified product from the importing nation in the future.
A) barter
B) offset
C) switch trading
D) buyback

Question

Quizplus · Accepted Answer

Offset involves a reciprocal arrangement where a company agrees to purchase goods or services from a country in the future in exchange for making a sale to that country, without specifying the exact products to be purchased. This allows the company to facilitate trade by overcoming the hard currency barrier, fitting the scenario described.

Scenario: Gro-Tru Grows to Europe