The majority of inter-firm trade involves:
A) spot purchasing of direct goods.
B) contract purchasing of indirect goods.
C) contract purchasing of direct goods.
D) spot purchasing of indirect goods.

Question

Quizplus · Accepted Answer

According to research, the majority of inter-firm trade involves contract purchasing of direct goods. Direct goods refer to materials, supplies, and equipment used in the production of goods or services. These goods are typically purchased through long-term contracts that establish a stable supplier relationship between firms. This type of inter-firm trade is common in manufacturing and construction industries, where raw materials, machinery, and equipment are necessary inputs. Spot purchasing of direct goods and both types of indirect goods (spot and contract) are less common in inter-firm trade.

The Majority of Inter-Firm Trade Involves