global pricing contract

global pricing contract
Ops
a contract between a customer and a supplier whereby the supplier agrees to charge the customer the same price for the delivery of parts or services anywhere in the world. As globalization increases, more customers are likely to press their suppliers for global pricing contracts. Through such contracts suppliers can benefit by gaining access to new markets and growing their business, achieving economies of scale, developing strong relationships with customers, and thereby gaining a competitive advantage that is difficult for competitors to break. There are risks involved, too, for example, being in the middle of a conflict between a customer’s head office and its local business units, or being tied to one customer when there are more attractive customers to serve.

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