When a firm enters a(n)_____ agreement with a country,it often ends up with what are called counterpurchase credits,which can be used to purchase goods from that country.
A) arbitrage
B) offset
C) switch trading
D) buyback
E) compensation

Question

Quizplus · Accepted Answer

Counterpurchase credits are often the result of offset agreements, where a firm agrees to purchase goods from a country as a condition of winning a contract or doing business there. These credits can then be used to purchase goods or services from that same country. Arbitrage involves taking advantage of price differences in different markets, switch trading involves trading debt securities for equity securities, and buyback and compensation agreements do not typically involve the exchange of credits.

When a Firm Enters A(n)_____ Agreement with a Country,it Often