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

Question

Quizplus · Accepted Answer

This situation is referred to as a "gray market." It involves the legal purchase of products from an authorized reseller in a lower-priced country and their subsequent sale in higher-priced countries through unauthorized retailers for prices below the manufacturer's suggested retail price. This practice is legal, but frowned upon by some manufacturers because it can undermine their pricing strategies and brand control.

Situation Where Products Are Bought in a Lower-Priced Country from a Manufacturer's