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In that instance, Geoff, the sole distribution rights for a territory have been acquired at a price.
From the manufacturer's point of view, they want to ensure their product is made available in as many countries as possible, and a way to get distributors for as much of the world as possible is to give a prospective distributor the reassurance that if they go to the trouble of setting themselves up in a new territory, the distributor will not find that they are being undercut by another distributor from outside the territory.
Of course, in that instance, we are talking about a single product. The manufacturer of course could choose to only sell their product directly from the factory, in which case all purchasers throughout the world would be stuck with the same price, plus extra freight for those situated far away.
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