An offset agreement combines a small firm with a major international company where the small firm essentially serves as a subcontractor on a large foreign project.

Question

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An offset agreement does involve a small firm partnering with a major international company, but the small firm is not necessarily serving as a subcontractor on a large foreign project. Rather, the offset agreement typically involves the foreign company or government requiring the major international company to invest in the local economy, which may involve subcontracting with local firms.

An Offset Agreement Combines a Small Firm with a Major