The sale of goods and services to a country by a company that promises to make a future purchase of a specific product from that country is called a(n)________.
A)counterpurchase
B)offset
C)switch trade
D)barter

Question

Quizplus · Accepted Answer

A counterpurchase is a type of reciprocal trade agreement where a seller agrees to purchase goods or services from a buying country in exchange for the sale of its own goods or services. It is also known as a buyback or counter-trade agreement. Option B is incorrect as offset refers to an arrangement where a company undertakes to buy goods or services from a particular country as part of a larger government contract. Option C is not a valid term in international trade, and option D refers to a direct exchange of goods or services without the involvement of money.

The Sale of Goods and Services to a Country by a Company