When the seller receives a part of payment in the form of cash and rest of the part in products it i...........

Principles of Marketing Management Pricing Decisions

When the seller receives a part of payment in the form of cash and rest of the part in products, it is known as

Compensation deal

Barter

Buyback arrangement

Offset

A type of countertrade that involves the exports of goods in one direction. The payment of the goods is split into two parts:

Part payment in cash by the importer.
For the rest of the payment the original exporter makes an obligation to purchase some of the buyer´s goods.

The products of the compensation deal can be used in the exporter´s internal production or they may be sold on in the wider market.

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