A long-term procurement contract helps to avoid the risks of opportunism, and should reduce procurement costs

Question

Quizplus · Accepted Answer

A long-term procurement contract allows for better planning and coordination between the buyer and supplier, which reduces the risks of opportunistic behavior like price fluctuations or uneven quality. This stability and reliability in the relationship should ultimately lead to reduced procurement costs.

A Long-Term Procurement Contract Helps to Avoid the Risks of Opportunism