A Firm Concludes a Counterpurchase Agreement with a Foreign Country

question 66

Multiple Choice

A firm concludes a counterpurchase agreement with a foreign country for which it receives some counterpurchase credits for purchasing its goods.The firm 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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Definitions:

Learned Behavior

Behavior that is acquired through experience or by observing the actions of others.

Joint Strategies

Collaborative plans of action designed and implemented by two or more parties to achieve a common goal.

Cross-cultural Negotiations

The process of negotiating between parties from different cultures, necessitating an understanding of cultural differences and sensitivities.

Risk-avoiding Cultures

Societal or organizational cultures that prioritize caution and seek to minimize uncertainty and potential negative outcomes.