Question

The Japanese manufacture tractors for rice paddies. They are smaller than most U.S. tractors and perfect for a weekend farmer who wants to tend to a small garden. The tractors are not sold in the U.S. through any authorized channels, yet they are available in the U.S. at prices below the manufacturer's suggested retail price. What is the term for how these tractors are being sold?

a. gray market
b. dumping
c. Over the counter
d. bypassed global channels
e.Through a distribution monopoly

Answer 1

a. gray market

Step-by-step explanation:

Gray market is when a product like the tractors, is sold through unauthorized channels. Obviously if a channel is unauthorized prices will not be the same.

Answer 2

Answer:A. gray market

Explanation: A gray market is a marketing of product that does not follow a manufacturer authorized distribution channels. A gray market is usually caused by distributors who instead of selling the products to the direct or end users,they tend to sell the product to other resellers who may be outside the geographical area where the product is expected to be sold. In most cases these products are not rejected by the country where they are resold,but are accepted if it meets the regulation standards.