BUSINESS ADMINISTRATION
INTERNATIONAL MARKETING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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differences in productivity levels between countries
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differences in productive resources
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existence of trade protection measures
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the difference in selling prices of products in markets is greater than shipping and other transaction costs
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Detailed explanation-1: -Gray Market Explained The gray market for goods thrives when there is a significant price discrepancy for a popular product in different nations. In many nations, there is a substantial gray market for popular consumer devices and electronics because these can be easily purchased online and shipped to any location.
Detailed explanation-2: -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-3: -The grey market (alt: gray market) refers to the problem of real products that have been produced by the approved manufacturer but diverted and sold in non-approved distribution channels.
Detailed explanation-4: -"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.