Multinationals Are Plagued by the Gray Market Problem

question 27

Multiple Choice

Multinationals are plagued by the gray market problem.The gray market consists of ________.

• A) the marketing of products to older consumers
• B) branded products diverted from normal distribution channels in the country of product origin
• C) branded products diverted from one country to another
• D) products being repackaged from the intended country to a diverted country
• E) products not having full warranties by the manufacturer

---

Definitions:

Flag Salute

A formal gesture of respect made towards a national flag, often involving specific movements or postures.

Establishment Clause

A provision in the First Amendment of the U.S. Constitution that prohibits the government from establishing an official religion or unduly favoring one religion over another.

First Amendment

An amendment to the U.S. Constitution that protects freedoms concerning religion, expression, assembly, and the right to petition.

Fourteenth Amendment

The Fourteenth Amendment to the United States Constitution, ratified in 1868, grants citizenship to all persons born or naturalized in the U.S., including formerly enslaved people, and provides all citizens with “equal protection under the laws.”