Question

Rockwell International sold a printing press to Zimbabwe for 8 million. The deal went through, however, only after Rockwell agreed to purchase8 million in ferrochrome and nickel from Zimbabwe, which it subsequently sold on the world market. This is an example of ________?

1) Barter trade
2) Foreign direct investment
3) Import substitution
4) Export promotion

Answer 1

In the scenario where Rockwell International both sold a printing press to Zimbabwe and purchased commodities from them, the exchange is known as counter purchase or offset trade, a form of barter.

Step-by-step explanation:

The scenario described in the question is an example of a countertrade, specifically a form of barter known as counter purchase or offset trade. In this situation, Rockwell International sold a printing press to Zimbabwe and then agreed to purchase ferrochrome and nickel from Zimbabwe, eventually selling these goods on the world market. This type of trade involves a reciprocal exchange of goods rather than the use of money as an intermediate transaction.