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 risk-sharing agreement of benefit to MacLoren? Why is it of benefit to the New Zealand distributor?
Both parties in practice benefit from this risk-sharing agreement. The manufacturer has predictable revenues within the range, while the distributor bears a moderate level of currency risk within the 5% 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.
The above statement is (true/false).

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