A Taiwanese discount store is able to purchase and import Coke made in the United States for 27% less than the price of Coke made in Taiwan. This is a example of a ________.

Question

Quizplus · Accepted Answer

This situation is an example of a gray market, which occurs when products are sold through legal channels but outside of the intended distribution channels. The discount store is able to purchase Coke made in the United States at a lower cost and import it to Taiwan to sell, which is not the normal distribution path for Coke in Taiwan.

A Taiwanese Discount Store Is Able to Purchase and Import