Hi. I need full explanations to the below questions.

Bofors AB is a Swedish company that specializes in the manufacturing and sales of weapon systems such as anti-aircraft/anti-tank guns, artillery, and other ammunition. The Indian government concluded an agreement with Bofors AB for the purchase of 410 FH77B howitzers ($1.3 billion) in 1986. The FH77B howitzer is a powerful, highly mobile artillery system. It has a gun with a range of 30 km and the capability to fire three rounds in 13 seconds. It can be integrated with a 6x6 all-terrain vehicle.

The agreement provided for the purchase of goods from India amounting to not less than 50 percent of the value of the contract. Given its lack of experience in countertrade, Bofor AB signed a contract with other Swedish and U.S. trading companies to fulfill its countertrade agreement with India. Among these companies, Sukab took the leading role due to its vast experience in international trade and expertise in countertrade. Sukab is owned by over eighty Swedish companies and was set up after World War II to promote Swedish exports.

Pursuant to the agreement, Sukab promoted the sale of Indian goods in Sweden through various channels including seminars held by Swedish trade councils and chambers of commerce. It also set up offices in India to provide training on the best ways to export Indian goods to Sweden.

The Indian government had to approve all the products being exported. Bofors AB was provided with a list of approved products. Certain products were specifically excluded from exports.

The major factor that motivated India to enter into the countertrade arrangement was its lack of sufficient hard currency to pay for the purchase of the howitzers. The countertrade arrangement provided an opportunity to India to generate enough hard currency to fulfill a portion of its commitments. Furthermore, the arrangement allowed India to expand its distribution channels and gain new markets. The countertrade arrangement also allowed Bofors AB to win the contract over other competing firms.

Questions

1. Do you think this to be an ideal trading arrangement for Bofors AB?
2. Would this form of trade arrangement be more beneficial to India than Bofors? Explain.