From an Exporter's Perspective,why Is an Offset More Attractive Than

question 142

Multiple Choice

From an exporter's perspective,why is an offset more attractive than a straight counterpurchase agreement?

• A)It is the simplest countertrade arrangement.
• B)It gives the exporter greater flexibility to choose the goods that it wishes to purchase.
• C)It allows the use of a specialized third-party trading house in the arrangement.
• D)It gives the exporter counterpurchase credits,which can be used to purchase goods from another country.

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Definitions:

Dual Federalism

A political arrangement in which state and federal governments are seen as co-equal sovereigns with separate and distinct areas of jurisdiction, often referred to as "layer-cake" federalism.

Maturity Risk

is the risk associated with the time until a financial instrument reaches its maturity, affecting interest rate exposure and investment valuation.

Time To Maturity

The duration remaining until the final payment date of a financial instrument, such as a bond, at which point the principal is supposed to be paid back to investors.