Among the reasons for the existence of gray markets are:

Question

Quizplus · Accepted Answer

All of the above reasons contribute to the existence of gray markets. A company's price-discount policy can create price discrepancies between regions, which incentivizes buyers to purchase from lower-priced regions and resell in higher-priced regions. Differential currency exchange rates can also make it more profitable for buyers to purchase goods in a lower-priced currency and resell in a higher-priced currency. Differential cost structures across retailers can lead to price discrepancies between retailers within the same market, creating opportunities for buyers to purchase from lower-priced retailers and resell at higher prices. Highly selective distribution can also create shortages of supply, leading buyers to seek out alternative sources of the product, including the gray market.

Among the Reasons for the Existence of Gray Markets Are