Offset Agreement - Definition

Definition

An offset agreement is an agreement between two parties whereby a supplier agrees to buy products from the party to whom it is selling, in order to win the buyer as a customer and offset the buyer's outlay. Generally the seller is a foreign company and the buyer is a government that stipulates that the seller must then agree to buy products from companies within their country. Often, the aim of this process is to even-up a country's balance of trade. This is frequently an integral part of international defense contracts.

Read more about this topic:  Offset Agreement

Famous quotes containing the word definition:

    ... if, as women, we accept a philosophy of history that asserts that women are by definition assimilated into the male universal, that we can understand our past through a male lens—if we are unaware that women even have a history—we live our lives similarly unanchored, drifting in response to a veering wind of myth and bias.
    Adrienne Rich (b. 1929)

    Scientific method is the way to truth, but it affords, even in
    principle, no unique definition of truth. Any so-called pragmatic
    definition of truth is doomed to failure equally.
    Willard Van Orman Quine (b. 1908)

    Perhaps the best definition of progress would be the continuing efforts of men and women to narrow the gap between the convenience of the powers that be and the unwritten charter.
    Nadine Gordimer (b. 1923)