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Question

$1.00 A small-volume foreign auto maker limit

  • From Business: General-Business
  • Closed, but you can still post tutorials
  • Due on May. 27, 2012
  • Asked on May 27, 2012 at 7:47:10PM
Asked by :
nancyalbadry
nancyalbadry Not confirmed
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Q:
A small-volume foreign auto maker limits the number of its franchised dealers in the United States and gives them exclusive territories. There are also non-dealers who have no official connection with the manufacturer. They buy its cars overseas and sell them in the United States, a phenomenon sometimes called a “grey market.” If you are a manufacturer do you necessarily want the grey market to cease to exist? Why or why not? How about if you are a franchised dealer?