What is offset and why is it important in global marketing? How can it be distinguished from counterpurchase?

 Offset is a reciprocal arrangement whereby the government in the importing country seeks to recover large sums of hard currency spent on expensive purchases such as military aircraft or telecommunications systems. Offset arrangements may also involve cooperation in manufacturing, some form of technology transfer, placing subcontracts locally, or arranging local assembly or manufacturing equal to a certain percentage of the contract value. Offset may be distinguished from counterpurchase since the latter is characterized by smaller deals over shorter periods of time. Another major distinction between offset and other forms of countertrade is that the agreement is not contractual but reflects it to memorandum of understanding that sets out the dollar value of products to be offset and the time period for completing the transaction. In addition, there is no penalty on the supplier for nonperformance. Some highly competitive sales have required offsets exceeding 100 percent of the valuation of the original sale.

I wanna give this person a hug.