Idle Time Gaming,Inc.needed silicon wafers that it knew could be mass produced efficiently by Silicon City,Inc. ,a start-up firm in India.The Indian company needed MSG (metallurgical grade silicon)in order to make the wafers which it knew it could get from a Chinese firm.The Chinese firm (mostly owned by the Chinese government)agreed to supply the silicon to the Indian company if it could get a certain quantity of gaming hardware from Idle Time.This beneficial exchange is described as:
A)Beneficial contracting.
B)Contract manufacturing.
C)Third Party purchasing.
D)Countertrading.

Question

Quizplus · Accepted Answer

The scenario described is an example of countertrading, which involves the exchange of goods or services between two parties rather than using cash payments. In this case, the Chinese firm is providing silicon in exchange for gaming hardware from Idle Time Gaming, Inc.