A small-volume foreign auto maker limits the number of its


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 "gray market."

A) If you are a manufacturer do you necessarily want the gray market to cease to exist?

B) Why or why not?

C) How about if you are a franchised dealer?

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Business Economics: A small-volume foreign auto maker limits the number of its
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