When an international seller sells a plant equipment or technology to another country and agrees to take payment in the resulting products, it is called?
Correct answer: B. buy-back
- A. barter
- B. buy-back
- C. counterpurchase
- D. like-value-exchange
Explanation
Buy-back is a countertrade arrangement in which the seller supplies plant or technology and receives payment in the products produced by that plant or technology. Counterpurchase usually involves buying unrelated goods in return for an export sale.
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