ICI sold a methanol plant to the former Soviet Union for $250 million and agreed to purchase 20% of the plant's output for ten years for a total of $350 million. Of which type of countertrade is this an example?

Question

Quizplus · Accepted Answer

In a buyback agreement, the seller builds and provides a turn-key plant, as well as the manufacturing know-how. The seller is paid up-front part of the cost of the plant in an agreed upon convertible currency. The seller agrees to purchase specific quantities of the plant's output over an extended period of time.

ICI Sold a Methanol Plant to the Former Soviet Union