A situation where products are bought in a lower-priced country from a manufacturer's authorized reseller, shipped to higher-priced countries, and sold through unauthorized retailers below the manufacturer's suggested retail price, is referred to as __________.
A)the black market
B)a gray market
C)a monopolized market
D)a globalized market
E)parallel exporting

Question

Quizplus · Accepted Answer

This situation is known as a gray market. It involves the unauthorized importation and sale of legally manufactured goods, typically to take advantage of price differences between markets. The goods are genuine but sold through unauthorized channels, often in violation of contractual agreements between the manufacturer and their authorized resellers.

A Situation Where Products Are Bought in a Lower-Priced Country