Terrance, a local businessman, purchases luxury watches from a cheaper market and sells them at much higher prices in a more expensive market. Given this information, it can be said that Terrance is involved in _____.

Question

Quizplus · Accepted Answer

Terrance is involved in gray market activity, which refers to the practice of buying products in a market where they are priced lower and selling them in a market where they are priced higher, often without the consent or authorization of the original manufacturer. This is different from countertrade, dumping, and transfer pricing, which involve trade agreements, selling goods below cost to gain market share, and setting prices for transactions within a corporation across borders, respectively.

Terrance, a Local Businessman, Purchases Luxury Watches from a Cheaper