Which of the following involves purchasing a specified quantity of a commodity for a year or more from a state trading company of another nation?
A)Bulk purchasing agreement
B)Bilateral agreement
C)Voluntary export restraint
D)Preferential trade agreement

Question

Quizplus · Accepted Answer

A bulk purchasing agreement involves purchasing a specified quantity of a commodity, usually at a discounted price, for a period of a year or more. This is often between private companies, but it can also involve state trading companies of different nations. Examples include oil purchases by countries such as China and India from state-owned companies in the Middle East.

Bilateral agreements are broader and involve multiple aspects of trade between two nations, while voluntary export restraints and preferential trade agreements involve more specific trade arrangements.

Which of the Following Involves Purchasing a Specified Quantity of a Commodity