91. Some manufacturers that contract with the U.S. government have most favored nation clauses in their contracts.
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9–1. Some manufacturers that contract with the U.S. government have most favored nation clauses in their contracts. This provision makes the firm sell to the government at the lowest price it charges to any other customer. On the surface this provision seems to be advantageous to the government because it ensures them the lowest price charged to any customer. Others argue, however, that the clause gives manufacturers more power in bargaining with other buyers. Explain how this increased bargaining power might occur.
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Related Book For
Managerial Economics And Organizational Architecture
ISBN: 9781260571219
7th International Edition
Authors: Clifford W. Smith, Jerold Zimmerman, James Brickley
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