Which one of the following is not a form of counter trade ?
Purchase on credit
Counter trade is international trade in which goods or services are paid for, wholly or partly, with other goods or services instead of only cash.
Its recognised forms include barter, buy back (the seller of plant takes part of its output as payment), compensation deals (part goods, part cash) and counter purchase (the exporter agrees to buy unrelated goods from the importer).
Buying goods on credit is an ordinary financing arrangement settled in money later, so it involves no reciprocal exchange of goods and is not a form of counter trade.
Hence, Purchase on credit.
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