Question: f ) Why is such a risk - sharing agreement of benefit to MacLoren? Why is it of benefit to the New Zealand distributor? Both
f Why is such a risksharing agreement of benefit to MacLoren? Why is it of benefit to the New Zealand distributor?
Both parties in practice benefit from this risksharing agreement. The manufacturer has predictable revenues within the range, while the distributor bears a moderate level of currency risk within the range. The distributor will hopefully be able to provide a more stable pricing to pass on to the customer, which will also benefit the manufacturer through a more stable and sustainable distributor sales outlet.
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