Question

Scenario: Gro-Tru Grows To Europe Gro-Tru, a maker of chemical fertilizers and pesticides, sees enormous growth potential in Central Europe. The company has received several inquiries from potential importers in the region, but in most cases, the potential importers have expressed difficulty in obtaining the hard currency to pay for Gro-Tru's products. Alistair Green, vice-president for business development, is exploring how Gro-Tru can meet the needs of the potential market. Gro-Tru would be engaging in ________, if it decides that in exchange for a hard-currency sale it would make a hard-currency purchase of an unspecified product from the importing nation in the future.

Answer 1

currency offset

Step-by-step explanation:

In simple words, An alternative means taking an opposing part in the stock markets in comparison to an initial starting position. In company, an offset may relate to the situation where damages arising from one business segment are compensated for by profits from another.

Within the financial markets, a investor joins an analogous, but contrary, contract to cover a futures contract that excludes the actual underlying delivery obligations. Thus, we can conclude that the given case illustrates offset settings.