A Firm Builds a Plant in a Country and Agrees

question 80

Multiple Choice

A firm builds a plant in a country and agrees to take a certain percentage of the plant's output as partial payment for the contract.This type of countertrade is called a(n)

• A)counterpurchase.
• B)offset.
• C)switch trade.
• D)buyback.
• E)barter.

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Definitions:

Imports

Goods and services brought into one country from another for sale, typically subject to tariffs and trade agreements.

Buyers

Individuals or entities that purchase goods or services.

Import Quotas

Limits set by a government on the quantity or value of goods that can be imported into a country, often used to protect domestic industries from foreign competition.

Tariffs

Taxes imposed by a government on imported goods, often to protect domestic industries or to raise revenue.