An offset agreement differs from a counterpurchase agreement because ________.
A) offset does not specify the type of product that must be purchased
B) counterpurchase does not specify the type of product that must be purchased
C) offset is the oldest form of countertrade
D) counterpurchase is not really a form of countertrade

Question

Quizplus · Accepted Answer

An offset agreement is a form of countertrade where the seller agrees to purchase goods or services from the buyer's country to offset the purchase of goods or services from the seller's country. It does not specify the type of product that must be purchased, unlike a counterpurchase agreement which requires the buyer to purchase a specific type or quantity of goods or services from the seller's country in exchange for the original purchase. Therefore, choice A is the correct answer.

An Offset Agreement Differs from a Counterpurchase Agreement Because ________