Idle Time Gaming, Inc., needed silicon wafers that it knew could be mass-produced efficiently by Silicon City, Inc., a start-up firm in India. The Indian company needed MSG (metallurgical grade silicon) in order to make the wafers, which it knew it could get from a Chinese firm. The Chinese firm agreed to supply the silicon to the Indian company if it could get a certain quantity of gaming hardware from Idle Time. This beneficial exchange is described as:
A) beneficial contracting.
B) contract manufacturing.
C) third Party purchasing.
D) countertrading.

Question

Quizplus · Accepted Answer

This situation involves countertrading, which is the exchange of goods or services between two parties without involving money, but rather through a barter system or offsetting of debts. In this case, the Chinese firm agrees to supply silicon to the Indian company in exchange for gaming hardware from Idle Time.