Low- cost distributors who buy more than they need and resell to distributors in other countries for less than they would have to pay through their "normal" channels are operating a(n):
A) low- cost operation.
B) illegal channel.
C) redistribution channel.
D) black market.
E) grey market.

Question

Quizplus · Accepted Answer

The given scenario describes the operation of a grey market. This is a market where goods are sold by unauthorized sellers outside the manufacturer's intended distribution channels, often at a lower price. Grey market distribution is not illegal but can lead to conflicts between manufacturers and unauthorized sellers.

Low- Cost Distributors Who Buy More Than They Need and Resell