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From an exporter's perspective, why is an offset more attractive than a straight counterpurchase agreement

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Answer:

Because it gives the exporter greater flexibility to choose the goods that he wishes to purchase.

Step-by-step explanation:

Counter purchase agreement is when a firm decided to buy back certain quantities of materials from the country that the materials were initially sold to. Under this agreement, the exporter agrees to purchase specific value of goods, service or technology previously sold to an importer within a stipulated time period. It is mostly useful for companies that wants to enter new market and also have an edge over their competitors in terms of market share.

Offset is more or less like counter purchase agreement, in as much one of the parties agrees to buy back the goods and services with a portion of the gain from the previous sale. What differentiate offset from Counter purchase agreement is that the party in offset can fulfil his duties with any firm in the country where the goods were previously sold to, hence more attractive from an exporter's perspective because it gives him greater flexibilit to choose the goods that he wishes to purchase.

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