Long-term contracts can help the buyer to gain exclusive access to proprietary supplier technology, and blocking competitor access to this supplier technology can result in at least a short-term competitive advantage for the buyer.

Question

Quizplus · Accepted Answer

Long-term contracts often involve sharing of proprietary technology between the buyer and supplier. By gaining exclusive access to this technology, the buyer can prevent competitors from accessing it, giving them a short-term competitive advantage.

Long-Term Contracts Can Help the Buyer to Gain Exclusive Access