BUSINESS ADMINISTRATION
INTERNATIONAL MARKETING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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black market is the part of economic activity that deals with illegal trading, whereas gray market refers to the flow of goods through informal distribution channels
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The black market can be the object of trading in illegal goods such as weapons, drugs
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gray market goods are not illegal but black market goods are illegal
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All of the above are correct
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Detailed explanation-1: -"Black market typically involves transactions outside of the official economy (either not paying taxes or dealing with illegal goods or services), whereas gray market is more about diversion or counterfeiting, ” notes Krisa Drost.
Detailed explanation-2: -Gray products are generally not illegal, it’s only that they are traded in unofficial channels of distribution. Smuggled goods, on the other hand, are those goods that have been smuggled.
Detailed explanation-3: -A gray market is an unofficial market for financial securities. Gray (or “grey”) market trading generally occurs when a stock that has been suspended from trades off the market, or when new securities are bought and sold before official trading begins.
Detailed explanation-4: -gray market refers to products that are sold legally, but outside of the brand’s permission. These products can harm relationships with distributors and damage product reputation. Common gray market goods include cameras, cars, watches and even pharmaceuticals.
Detailed explanation-5: -An estimated $7 billion to $10 billion worth of products are sold every year in the United States outside manufacturers’ authorized distribution channels. For these producers, controlling gray market distribution presents a serious problem.