Author Question: Free trade zones in China a. attracted 60 billion in investments. b. are always export processing ... (Read 62 times)

Evvie72 · **on:** Jun 29, 2018

Free trade zones in China
a. attracted 60 billion in investments.
b. are always export processing zones.
c. encourage nonautomatic import licensing
d. all of the above

Question 2

Buying a party's position in a countertrade in exchange for hard currency and selling it to another customer is known as a(n)
a. Counterpurchase c. Switch trade
b. Offset purchase d. Buyback agreement

wilsonbho · **Reply #1 on:** Jun 29, 2018

Answer to Question 1

A
By 2002, the free trade zones in China attracted 60 billion in investments, employed 2 million people, and contributed a fourth to the nation's exports.

Answer to Question 2

C
Switch trading involves buying a party's position in a countertrade in exchange for hard currency and selling it o another customer. Offset purchases involve large hard-currency purchases, such as the purchase of defense equipment, by a developing country. The seller agrees, in return for the sale of its offering, to purchase products that are valued at a certain percentage of the sale. In a buyback agreement, the seller builds and provides a turn-key plant, as well as the manufacturing know-how. The seller is paid up-front part of the cost of the plant in an agreed upon convertible currency. The seller agrees to purchase specific quantities of the plant's output over an extended period of time.