Offset refers to the use of a specialized third-party trading house in

QUESTION

Offset refers to the use of a specialized third-party trading house in a countertrade arrangement

Indicate whether the statement is true or false.

ANSWER

FALSE
An offset, a type of countertrade, is similar to a counterpurchase insofar as one party agrees to purchase goods and services with a specified percentage of the proceeds from the original sale. The difference is that this party can fulfill the obligation with any firm in the country to which the sale is being made