The Evolution Of Contracting Capacity Under Repetitive International Transactions

This research is to study how Taiwanese corporations sign repeated contracts with foreign distributors while with lack of contracting capabilities and cognitive deficit in international contracting. By contracting learning during the negotiation process, these corporations gradually overcame the obsticles and established longterm mutual corporations. This essay is based on the case study of a Taiwanese corporation in tool industry, and interview of senior managers about how the corporation reduces the risk before and after each transaction with European, American, South African, and Chinese… etc international distributors.The exclusiveship contract the corporation has developed is based on its 30 years of experiences in interacting with its worldwide distributors, and has three aspects which includes exchange commitment, enforce and safeguarding, and contingency planning. The three aspects provide the corporation with safeguard, coordination, and adaption in transaction and governance with the distributors.In addition to formal contracts, both brand provider and distributors established cooperating relationship outside of the contracting scope for closer collaborations.lt is conducted by social mechanism such as worldwide distributor seminars, training courses, and connect the worldwide distributors and establish the trust between each others.This research hopes to provide the 30-year-experiences and analysis to assist Taiwanese and Chinese corporations to develope contracting governance and relational governance, to overcome the international culture obsticles, and to establish longterm partnership with the international communities.