The seller sells a plant, equipment, or technology to another country and agrees to accept as partial payment products manufactured with the supplied equipment in a(n)
A) co-optation.
B) buyback arrangement.
C) auction.
D) barter.
E) offset.

Question

Quizplus · Accepted Answer

This is a classic definition of a buyback arrangement, where the seller agrees to accept products manufactured using the supplied technology or equipment as partial payment. The other options are not relevant in this context. Co-optation refers to the process of bringing external parties into an organization; an auction is a public sale where goods are sold to the highest bidder; barter involves direct exchange of goods without using money, and offset refers to an arrangement where local content is required as a condition of a sale.

The Seller Sells a Plant, Equipment, or Technology to Another