Final answer:
A channel system where members agree by contract to cooperate is known as a contractual distribution system, which mirrors the concept of a social contract within a society. Contracts assure that business transactions can occur reliably, as the complexity of the modern economy requires coordination among various actors to meet societal needs.
Step-by-step explanation:
A channel system where various members agree by contract to cooperate with each other is typically referred to as a contractual distribution system. In such systems, each entity retains its individual ownership, but they collectively work towards shared marketing goals and adhere to certain operational guidelines, much like a social contract in a society.
The idea of a social contract organized by a state or governing body is designed to protect the interests of individuals and to discourage anarchy by outlining specific rights and responsibilities for all parties involved.
Within the realm of economics, contracts are essential for ensuring that transactions, such as the provision of goods, services, and employment, can be conducted with the assurance of payment and delivery as agreed upon. Anthony Giddens discussed how systems, including economic systems, influence individual decisions within a society.
Our modern economy is a highly complex system of production, consuming, and employment influenced by the economic decisions and interactions of individuals on a grand scale. This intricate network ensures that the society's needs, such as the required number of televisions, are met through coordinated efforts among different actors within the system, including businesses, consumers, and regulating bodies.