When is renegotiating long-term contracts harder?
A) When global competition is the least
B) Where buyer or seller concentration in the industry is low among larger employers
C) When there are periods of low inflation
D) Where capacity utilization varies during the contract period

Question

Quizplus · Accepted Answer

When capacity utilization varies during the contract period, it can be harder to renegotiate long-term contracts as it can create uncertainty and disagreements between the parties involved. Factors such as global competition, buyer/seller concentration, and inflation rates may still play a role, but they are not necessarily the primary determining factors in the difficulty of renegotiating long-term contracts.

When Is Renegotiating Long-Term Contracts Harder