McDonnell Douglas sold DC-9s to the former Yugoslavia. To secure the order, McDonnell Douglas agreed to help sell products sourced in the former Yugoslavia to buyers in the United States to generate capital to help finance the purchase of the passenger planes. Of which type of countertrade is this an example?

Question

Quizplus · Accepted Answer

Offset purchases involve large hard-currency purchases, such as the purchase of defense equipment and airplanes, by a developing country. The seller agrees, in return for the sale of its offering, to purchase products that are valued at a certain percentage of the sale.

McDonnell Douglas Sold DC-9s to the Former Yugoslavia