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:

Expectancies

What someone expects to happen, based on past experiences of what was rewarding.

Rewards

Benefits or positive feedback received as a result of an action, which serve as reinforcement for that behavior.

Punishment

The imposition of an undesirable or unpleasant outcome upon a group or individual, in response to a behavior deemed unacceptable or unsatisfactory.

Unconditioned Stimulus

A stimulus that naturally and automatically triggers a response without any prior learning.