Pepsi Co. sold its cola syrup to Russia and agreed to buy Russian vodka at a certain rate for sale in the United States for the next five years. What kind of a countertrade did both the parties indulge in?
What will be an ideal response?
Both the parties indulged in an offset. In such countertrade, the seller receives full payment in cash but agrees to spend a substantial amount of the money in that country within a stated time period.
Business
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