Question

Agreement in which an exporter of goods or services to another country commits to import goods or services of corresponding value from that country is called ______.

Answer 1

Answer: Counter-trade

Step-by-step explanation:

Counter-trade is the mechanism in which goods, products and services are exchanged for some other items and services instead of using money payment. This technique is followed in international business processes. As currency is not being used for paying and purchasing goods ,it is used in developing countries.

There are several factors that effect the mechanism such as consumption of time take for completion of trading process is high.Quality of goods or services can be uncertain in this type of process.