In a complicated negotiated, Minmetals in China agreed to purchase at least 24,000 tons of copper cathode for $35 million from Pasar in the Philippines.According to the terms of the sale, Pasar will provide at least $12 million worth of coal to a Chinese power company that will provide the electricity needed to operate Minmetals.This is an example of a(n):
A)joint venture
B)countertrade
C)contra-deal
D)counteroffer
E)international partnership

Question

Quizplus · Accepted Answer

This is an example of countertrade, where goods are exchanged partially or fully in payment for other goods rather than for cash, as seen in the agreement involving copper cathode and coal.

In a Complicated Negotiated, Minmetals in China Agreed to Purchase