HOW TO ADDRESS THE GRAY MARKET THREAT USING PRICE COORDINATION

Gray market goods are brand name products sold through unauthorized ch annels. Gray markets have recently become more threatening to multinat ional companies as a result of the increasing number of global product s available and easily accessible price information about them. The au thors present a framework to select the right approach to the gray mar ket threat by coordinating price-setting decisions based on the subsid iary's local resources and the complexity of the product's market. Thr ough examples from their sample of companies that have dealt with gray markets, they show how price coordination methods have been implement ed.