What Is the LEAST Likely Reason That International Companies Are

question 75

Multiple Choice

What is the LEAST likely reason that international companies are concerned about the gray market?

• A)undermining the long-term viability of the distributorship system
• B)causing a firm's operations in different countries to compete against each other
• C)requiring companies to make frequent price adjustments to capture the market
• D)preventing companies from charging what the market will bear in each country

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Definitions:

Initial Equilibrium

The state where supply and demand balances are met at the beginning of an analysis, setting the baseline prices and quantities.

Refining Technology

The process and technology improvements involved in purifying raw materials, particularly in converting crude oil into gasoline, diesel, and other petroleum products.

Consumers' Income

The total amount of income available to consumers for spending and saving after income taxes have been accounted for.

Equilibrium Price

The market price where the supply of goods matches demand.