Question

In: Operations Management

Compare and contrast counter purchase agreements and offset arrangements. Why might an exporter prefer an offset...

Compare and contrast counter purchase agreements and offset arrangements. Why might an exporter prefer an offset to a counter purchase deal?

Solutions

Expert Solution

A counterpurchasing contract is the mutual purchasing arrangement when a business allows the purchase from a country to which an offer is made of certain quantity of goods. A counter-compensation is equivalent as long as one side decides to buy goods and services with a certain amount of the proceeds from the original sale. The distinction is that this group can comply with its duty with any business in the county to which it is licensed. This type of arrangement offers an exporter more choice in selecting the products to be purchased


Related Solutions

compare and contrast licensing agreements and franchising agreements
compare and contrast licensing agreements and franchising agreements
Basel I and Basel II. Compare and contrast these two International agreements. Explain their objectives, scope...
Basel I and Basel II. Compare and contrast these two International agreements. Explain their objectives, scope and power of enforcement. In your opinion are there any valid arguments for or against these agreements?
a) WHY might a tenant prefer a lease with higher effective rentthan an alternative with...
a) WHY might a tenant prefer a lease with higher effective rent than an alternative with a lower effective rent?b) describe the most common method used to specify rent changes over time for a commercial lease?c) What factor tends to make both owner and tenants prefer longer term leases all else being equal?d) A prospect tenant has presented two lease proposal to the owner of the office building .The first alternative has a five years termand a contract rental rate...
Discuss why an organization might prefer job evaluation or market pricing.
Discuss why an organization might prefer job evaluation or market pricing.
Why might a corporation prefer double-declining balance as its method of depreciation? Why is the effective...
Why might a corporation prefer double-declining balance as its method of depreciation? Why is the effective interest rate method of amortizing bond discount and premium accepted as GAAP rather than straight-line method?
1. Why might a business prefer a note receivable to an account receivable, and how is...
1. Why might a business prefer a note receivable to an account receivable, and how is it impacting the uncollectible account?
How might you compare and contrast the organization of the healthcare systems of the United States,...
How might you compare and contrast the organization of the healthcare systems of the United States, Germany, and the United Kingdom?
Why did the Articles of Confederation fail? What reasons might explain why someone would prefer the...
Why did the Articles of Confederation fail? What reasons might explain why someone would prefer the Articles of Confederation to the Constitution? What were the biggest benefits of the Constitution over the Articles of Confederation?
1.Why might the foreign exporter be cutting prices to U.S. customers? 2. What information do you...
1.Why might the foreign exporter be cutting prices to U.S. customers? 2. What information do you think you need before committing to a purchase? Specifically, what pricing information do you need? 3. If it turns out the products are being “dumped” in the U.S. market, what would be the result and how might it affect your firm and your purchasing decision? 4.Do you think it is fair or unfair for an exporter to dump its goods in a foreign market?...
Which of the following represents a reason why a company might prefer to issue bonds instead...
Which of the following represents a reason why a company might prefer to issue bonds instead of issuing shares of common stock? Select all answers that apply. For the tax advantages (deductibility of interest) To lower the risk of bankruptcy To provide additional cash flow flexibility To raise capital without forfeiting ownership in the company
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT