TruWorth Petroleum negotiated a deal with a foreign country in which TruWorth would build several ammonia plants in the foreign country and receive ammonia as partial payment over a 20-year period.This is an example of
A)switch trading.
B)a buyback.
C)a counterpurchase.
D)an offset.
E)barter.

Question

Quizplus · Accepted Answer

A buyback is a type of countertrade where a firm builds a plant in a foreign country or supplies technology, equipment, training, or other services to the country, and agrees to take a certain percentage of the plant's output as partial payment for the contract.

TruWorth Petroleum Negotiated a Deal with a Foreign Country in Which