Most inter-firm trade involves:
A)spot purchasing of direct goods.
B)contract purchasing of indirect goods.
C)contract purchasing of direct goods.
D)spot purchasing of indirect goods.

Question

Quizplus · Accepted Answer

Inter-firm trade mostly involves contract purchasing of direct goods, such as raw materials or components used in production. This type of trade is characterized by long-term agreements between firms and is essential for ensuring a reliable supply chain and stable production processes. Spot purchasing of direct goods may occur in some cases, but it is less common than contract purchasing. The purchasing of indirect goods, such as office supplies or maintenance services, is also significant for the operation of a business, but it usually involves spot purchasing rather than contract purchasing.

Most Inter-Firm Trade Involves