To cater to the growing demand for luxury cars,Terabithia Republic agreed to buy 5,000 cars from MotoSporto Inc.in exchange for 5,000 gallons of oil.Due to a lack of trust,Terabithia decided to make it a one-time-only deal.Which of the following forms of countertrade is the country most likely to use?
A)counterpurchase
B)offset
C)switch trading
D)barter
E)buyback

Question

Quizplus · Accepted Answer

The most likely form of countertrade that Terabithia Republic will use is barter. This is because they agreed to exchange 5,000 cars from MotoSporto Inc. for 5,000 gallons of oil, which is a direct trade of goods without any monetary transaction involved. Furthermore, the one-time-only deal suggests that they are not interested in establishing a long-term relationship or contractual obligation with MotoSporto Inc., which is commonly associated with other forms of countertrade like counterpurchase, offset, switch trading, and buyback.

To Cater to the Growing Demand for Luxury Cars,Terabithia Republic