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.
-One option that intrigues Alistair is the process in which one company sells to another its obligation to make a purchase in a given country.This arrangement is known as ________.
A) barter
B) offset
C) switch trading
D) buyback

Question

Quizplus · Accepted Answer

Switch trading refers to the process where a company sells its obligation to make a purchase in a given country to another company, which is the scenario described.

Scenario: Gro-Tru Grows to Europe