Solved by verified expert :51. A clearing arrangement
A. Is also called a bilateral clearing agreement
B. Is a form of barter
C. Involves two parties agreeing to buy a specified amount of goods or
services from one another.
D. All of the above
52. A switch trade
A. Is the purchase by a third party of one country’s a clearing agreement
balance for hard currency.
B. Is a form of barter
C. Involves two parties agreeing to buy a specified amount of goods or
services from one another.
D. All of the above
53. A buy-back transaction
A. Is also called a bilateral clearing agreement
B. Involves a technology transfer via the sale of a manufacturing plant:
as part of the terms, the seller of the plant agrees to purchase a certain
portion of the plant output.
C. Involves two parties agreeing to buy a specified amount of goods or
services from one another.
D. All of the above
54. A counterpurchase
A. Involves a technology transfer via the sale of a manufacturing plant:
as part of the terms, the seller of the plant agrees to purchase a certain
portion of the plant output.
B. Is similar to a buy-back transaction but the seller of the plant agrees
to buy unrelated goods.
C. Is a form of barter
D. Involves two parties agreeing to buy a specified amount of goods or
services from one another.
55. An offset transaction
A. Can be viewed as a counterpurchase trade agreement involving the
aerospace/defense industry.
B. Involves a technology transfer via the sale of a manufacturing plant:
as part of the terms, the seller of the plant agrees to purchase a certain
portion of the plant output.
C. Is the purchase by a third party of one country’s a clearing agreement
balance for hard currency.
D. None of the above.
56. A buy-back transaction
A. Can be viewed as direct foreign investment in the purchasing country.
B. Can be viewed as direct foreign investment in the exporting country.
C. Can be viewed as indirect foreign investment in the purchasing country.
D. None of the above
57. Countertrade transactions
A. Are included in official trade statistics.
B. Are NOT included in official trade statistics.
C. Reduce trade imbalances and trade deficits
D. Both a) and c)
58. The armed forces of ____________ leads all
government agencies in countertrade
A. The United States
B. Great Britain
C. China
D. The Philippines
59. Arguments in favor of countertrade include
benefits such as:
A. Conservation of cash or hard currency
B. Improvement of trade imbalances
C. Maintenance of export prices
D. All of the above
60. A typical foreign trade transaction requires three
basic documents:
A. Letter of credit, bill of lading, and shipping documents.
B. Time draft, banker’s acceptance, and bill of lading.
C. Letter of credit, time draft, and bill of lading.
D. Letter of credit, banker’s acceptance, and bill of lading.
