When a Specialized Third-Party Trading House Is Used in a Countertrade

question 77

Multiple Choice

When a specialized third-party trading house is used in a countertrade arrangement,it is called:

• A) counter-purchase
• B) offset
• C) managed barter
• D) buyback
• E) switch trading

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Definitions:

Buyer

An individual or entity that acquires goods or services in exchange for money.

Lessee

A person who pays for the use or possession of another’s property.

Shipment Contract

A contract in which the seller is required to ship the goods by carrier. The buyer assumes liability for any losses or damage to the goods after they are delivered to the carrier. Generally, a contract is assumed to be a shipment contract if nothing to the contrary is stated in the contract.

Destination

The place to which someone or something is going or being sent.