When distributors do not have authorization from manufacturers but divert products from low-price markets and sell them in high-price markets, they are practicing ________.
A) gray market distribution
B) price fixing
C) dumping
D) compensation trading
E) offset pricing

Question

Quizplus · Accepted Answer

This practice is known as gray market distribution, where distributors obtain products from unauthorized sources and sell them at a higher price in a market where the product has a higher demand and fetches a higher price.

When Distributors Do Not Have Authorization from Manufacturers but Divert