_____ occurs when a firm physically builds a plant in another country or provides a service, equipment, or technology to support the plant; the firm then agrees to take a portion of the plant's output as payment.
A)Switch trading
B)Buy-back
C)Offset
D)Counterpurchase
E)Barter

Question

Quizplus · Accepted Answer

Buy-back occurs when a firm agrees to build a plant or provide equipment/technology in another country and accepts some of the plant's output as payment. This arrangement is often used in international trade to facilitate deals where direct monetary exchange may be difficult or when fostering long-term relationships and technology transfer.

_____ Occurs When a Firm Physically Builds a Plant in Another