To win a contract to supply the United Kingdom with AWACS military aircraft, Boeing agreed to purchase products from the UK whose value was equivalent to 130% of the contract.This type of pricing arrangement, which is common when the customer is a foreign government and the product has military applications, is known as:

Question

Quizplus · Accepted Answer

This type of pricing arrangement is known as offset, which involves the supplier agreeing to purchase goods or services from the customer country as a way of offsetting the cost of the contract. Barter involves exchanging goods or services without using money, switch trading involves exchanging similar goods or services, compensation trading is not a recognized term in this context, and dumping refers to selling goods at a lower price than in the home market.

To Win a Contract to Supply the United Kingdom with AWACS