Question

A counterpurchase occurs when a firm agrees to buy a certain amount of materials back from a country to which a sale is made. direct exchange of goods and services takes place between two parties without a cash transaction. a firm builds a plant in a country and agrees to take a certain percentage of the plant's output as partial payment for the contract. exchange of goods and services occur through a bank in the exporter's country.

Answer 1

A counterpurchase occurs when a firm agrees to buy a certain amount of materials back from a country to which a sale is made.

Counterpurchases are typically ongoing in their buying agreement. These transactions are made frequently and this allows for a better relationship between the buyer and seller. One company purchases materials to make their product, whatever doesn't sell/get used but the purchasing company is given back to the country from where they made their purchase.