Full-Sole Shoes Concludes a Counterpurchase Agreement with Japan for Which

question 89

Multiple Choice

Full-Sole Shoes concludes a counterpurchase agreement with Japan for which it receives some counterpurchase credits. Full-Sole Shoes does not want any foreign goods, however, so it sells the credits to a third-party trading house at a discount. The trading house finds a firm that can use the credits and sells them at a profit. This is an example of

• A) barter.
• B) switch trading.
• C) an offset.
• D) a buyback.
• E) compensation.

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