Question

Diversion refers to the illegal placement of goods in the hands of an individual for whom an export license would not be granted because of the type of product, the product's end use, or the country involved.

a) true
b) false

Answer 1

The correct answer is True.

Step-by-step explanation:

In some cases, certain products are Market Specific. That is, they are intentionally designed with a particular kind of market in mind.

Some of the peculiarities of markets are:

1. Psychographics: These include qualities which define a particular geographical location such as: Values, Religions Beliefs, Culture, general opinion, lifestyle and or interests. To violate these factors or qualities may translate to economic self-sabotage, hence the restrictions;
2. Law, rules and regulations: Certain kind of products are prohibited from some countries. Hence, a global player would do well to respect those laws. The consquence of a breach may result in legal actions and or significant loss in brand equity.

Cheers!