Bananastan are considering relationship

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Question

Consider a situation where a manufacturer from Alkaland and a distributor based in Bananastan are considering a relationship. To serve this market, the firm from Alkaland must invest in new equipment,which can be used only for the Bananastani market. The two firms transact infrequently, and there is significant uncertainty about the nature of the market demand. Trust between the two firms is low, and theAlkalandian firm believes the Bananastani legal system to be unsympathetic to foreign firms. How should the Alkalandian firm choose to organize its transactions for serving the Bananastani market.

Reference no: EM133636731

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