| 单词 | exclusive dealing |
| 释义 | exclusive dealing An agreement between the producer and a distributor of certain goods that one will trade only with the other. This may apply generally, or within a particular country or district. In some cases this means that a retailer agrees to stock only one manufacturer's brands; in other cases a manufacturer agrees to sell through only one outlet in a given area. It is possible for both forms of restriction to apply. Such practices are criticized as being in restraint of trade. Economies of scale may sometimes make the actual trade flows stipulated in such agreements efficient, but it is argued that in such cases the same result would be produced by market forces, so that no agreement is necessary. Defenders of exclusive dealing arrangements argue that they promote efficient trading patterns by protecting both parties against opportunistic conduct by the other. Once one party has sunk capital in equipment designed for handling trade with the other, their partner can improve the terms they trade on by threatening to switch to rival partners; exclusive dealing arrangements help to prevent this. Suppliers may also fear loss of reputation if their goods are handled by unqualified distributors, or if customers fail to appreciate that unsatisfactory goods sold through an outlet linked with their brand name are not actually theirs. |
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