Answer to Question 1
To facilitate countertrade, firms may agree to establish clearinghouse accounts, in which the exporting firm incurs a counterpurchase obligation of an equivalent value, which is recorded in its clearinghouse account. When the exporting firm eventually buys goods from its partner, its clearinghouse obligation is reduced. Thus, a firm does not need to balance any single countertrade transaction, although it must honor its cumulative set of obligations by the time its clearinghouse account expires.
Answer to Question 2
Public relations consists of efforts aimed at enhancing a firm's reputation and image with the general public, as opposed to touting the specific advantages of the individual product or service.
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