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Build a fleet of submarines for the sri lankan navy

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Reference no: EM131155065

ROC Engineering, a Chinese shipbuilding company, agrees to build a fleet of submarines for the Sri Lankan navy, for which it will be paid in Sri Lankan currency. As per the agreement, ROC must also spend a substantial amount of the money it generates through this deal within the country. In accordance with the contract, ROC buys Sri Lankan tea at a reduced rate. This is an example of which of the following forms of countertrade?

  • offset

  • barter

  • compensation deal

  • descending bid

Reference no: EM131155065

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