Offset agreements combine small firms with major international companies; the larger company acts as the primary contractor, and the smaller firm supports the larger with specialized exporting knowledge.

Question

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Offset agreements typically involve a larger company agreeing to purchase goods or services from a smaller company in the same country as the buyer, to offset the economic impact of a large purchase, rather than the smaller firm supporting the larger with specialized exporting knowledge.

Offset Agreements Combine Small Firms with Major International Companies; the Larger