ABSTRACT
When manufacturers/suppliers terminate distribution agreements, distributors may incur serious losses. The distributor has to leave the distribution network and sever its links not only with the supplier but also with its own customers which are loyal to the product. It may have relied strongly on the continuation of the contract, having invested heavily in the continuing trade relationship. Japanese distributors are usually small or medium sized companies and may be very dependent on the continuation of supplies. Frequently, the distributor’s business is for a great deal dependent upon one single product line.
