Pierre Cardin gives technical advice on textile manufacturing to China and in exchange receives silk and cashmere. This is an example of which of the following?

Question

Quizplus · Accepted Answer

This is an example of countertrade, which involves exchanging goods or services instead of traditional currency payments. In this case, Pierre Cardin is providing technical advice and receiving silk and cashmere in exchange. Choice A (counteroffer) is incorrect as it involves a negotiation tactic to respond to an initial offer, while B (joint venture) and D (contra-deal) do not accurately describe the exchange of goods and services in this situation.

Pierre Cardin Gives Technical Advice on Textile Manufacturing to China