Answer to Question 1
Many reasons exist for the termination of a channel relationship, but the most typical are changes in the international marketer's distribution approach or a perceived lack of performance by the intermediary. On occasion, termination may result from either party not honoring agreements. It can also be the result of structural change in the firm's logistics operations.
When a producer expands its market presence, it may expect more of a distributor's effort than the distributor is willing to make available. Furthermore, with expansion, the marketer may want to expand its product line to items that the distributor is neither interested in nor
able to support. This could also lead to termination of the channel relationship.
In some cases, intermediaries may not be interested in growing the business beyond a certain point or as aggressively as the principal may expect. As a marketer's operations expand, it may want to start to coordinate operations across markets for efficiency and customer-service reasons or to cater to global accountsthereby needing to control distribution to a degree that independent intermediaries are not willing to accept, or requiring a level of service that they may not be able to deliver. This could lead to termination of the channel relationship.
Answer to Question 2
noninteractive
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