If General Motors (GM) agrees to purchases Borg-Warner transmissions, and Borg-Warner agrees to buys trucks and cars from GM, they would be demonstrating which type of buyer-seller interaction?
A) exclusive dealing
B) supply partnerships
C) tying arrangements
D) noncompetitive bidding
E) reciprocity

Question

Quizplus · Accepted Answer

Reciprocity refers to a mutual exchange of goods or services between two parties, where each party agrees to buy from the other. In this case, GM and Borg-Warner are agreeing to purchase each other's products, demonstrating reciprocity.

If General Motors (GM) Agrees to Purchases Borg-Warner Transmissions, and Borg-Warner