Author Question: Before the fall of communism in Eastern Europe and before German reunification, Volkswagen sold ... (Read 108 times)

armygirl · **on:** Jun 29, 2018

Before the fall of communism in Eastern Europe and before German reunification, Volkswagen sold 10,000 cars to East Germany and agreed to purchase, over a period of two years, goods for the value of the automobiles, from a list of goods provided by the East German government. What type of countertrade does this example describe?
a. Clearing agreement c. Offset purchase
b. Counterpurchase d. Buyback agreement

Question 2

A discontinuous innovation is defined as:
A) a product that pushes all similar products out of the market.
B) a product that disrupts consumers' lives.
C) a product that disrupts a firm's marketing operations.
D) a product that is so new that we have never known anything like it before.
E) a product that has new social meanings carried by its use and ownership.

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

Answer to Question 1

B
This is an example of counterpurchase, which involves two exchanges that are paid for in cash, and two parallel contracts.

Answer to Question 2

D