Specialization Agreement

Summary of Specialization Agreement

Also known as a rationalization agreement, an arrangement among competing manufacturers of like products that each will sell only certain products, thereby providing each participant in the agreement a dominant position for a given product.

(Main Author: William J. Miller)

Specialization Agreement and International Trade Economy

In relation to international trade economy, Christopher Mark (1993) provided the following definition of Specialization Agreement: A restraint of trade arrangement among rival firms .stipulating that each will sell only certain products, thereby assuring each participant a dominant market position for the specified products.