When a firm builds a plant in a country and agrees to take a certain percentage of the plant's output as partial payment for the contract,it is called:
A)a counterpurchase.
B)an offset.
C)switch trading.
D)a buyback.

Question

Quizplus · Accepted Answer

A buyback occurs when a firm builds a plant in a country-or supplies technology,equipment,training,or other services to the country-and agrees to take a certain percentage of the plant's output as partial payment for the contract.

When a Firm Builds a Plant in a Country and Agrees