Exclusive dealing arrangements enable an enterprise, when in a dominant position of market power in respect of the supply of a product, to engage in differential pricing policies as between each importing market, the price being set on the basis of the highest that each market can bear. Such policies can have detrimental effects on the balance of payments of the importing country. Exclusive dealing arrangements, when engaged in by enterprises in a dominant position of market power, are also likely to adversely affect the ability of new entrants to penetrate the market, either as domestic manufacturers or as competing importers/distributors.