Gray Markets Impose Several Costs or Consequences on Global Marketers

question 76

Multiple Choice

Gray markets impose several costs or consequences on global marketers, which does not include:

• A)damage to channel relationships.
• B)dilution of exclusivity.
• C)free riding
• D)reputation and legal liability.
• E)increase product demand

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Definitions:

Indirect Costs

Expenses that are not directly traceable to a specific product or service but are necessary for the business's general operation.

Investment Account

An account held at a financial institution, brokerage, or investment firm that holds securities, cash, and other assets for investment purposes.

Common Stock

A form of corporate equity ownership, a type of security that represents ownership in a corporation and a claim on part of the corporation's profits.

Retained Earnings

The portion of a company's profits that is kept or retained rather than paid out to shareholders as dividends, typically used for reinvestment in the business, paying off debt, or other purposes.