Many multinationals are plagued by the grey market problem. The grey market consists of
A) branded products diverted from one country to another.
B) branded products diverted from authorized distribution channels either in-country or across international borders.
C) products not having full warranties by the manufacturer.
D) products being repackaged from the intended country to a diverted country.
E) the marketing of products to older consumers.

Question

Quizplus · Accepted Answer

The grey market consists of branded products that are diverted from authorized distribution channels either in-country or across international borders. These products are sold outside of the manufacturer's intended channels of distribution and often at lower prices, causing harm to the manufacturer's profits and reputation.

Many Multinationals Are Plagued by the Grey Market Problem