When a distributor buys a product made in one country and agrees to distribute it in a second country, but instead diverts it to a third country, _____ is occurring.

Question

Quizplus · Accepted Answer

Gray marketing occurs when a product is bought in one country and then sold in another without the permission or authorization of the original manufacturer. This often involves diverting the product to a market for which it was not originally intended, bypassing the authorized distribution channels.

When a Distributor Buys a Product Made in One Country