If Blades renews the agreement with the Thai retailer, it will have to maintain the relatively low prices it charges the Thai retailer. It may be able to charge higher prices by establishing its own distribution channels. If economic conditions in Thailand improve, demand for Blades’ products in Thailand will likely be strong, and Blades would probably generate higher profit margins by using its own distribution channels. However, if economic conditions in Thailand continue to deteriorate, the agreement would be an advantage for Blades, as it guarantees the sale of a minimum number of products sold each year.