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

question 5

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.
• D)It gives the exporter counterpurchase credits,which can be used to purchase goods from another country.
• E)It allows direct exchange of goods and/or services between two parties without a cash transaction.

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Definitions:

Inventories

The raw materials, work-in-process products, and finished goods that are considered to be the portion of a business's assets that are ready or will be ready for sale.

GDP

The total value of all end products and services created within a country's borders during a certain time frame defines Gross Domestic Product.

Production

The process of creating goods or services by combining labor, capital, and raw materials in order to meet consumer demand.

Rental Housing Services

Rental Housing Services refer to the provision of accommodation for a payment made by tenants to landlords under agreed terms.