A grey market is a form of exploiting price differences between territorial boundaries that is legal in a legal sense but undesirable for companies.
In particular, manufacturers of higher-value products such as automobiles or luxury items are exposed to grey markets problems. A grey market is created when products can be obtained at a cheaper price within a country than in a neighboring or nearby country. The occurrence of the Internet has created many new grey markets, as products can easily be distributed from a country with lower prices. In essence, three possible forms of the grey markets exist:
One strategy to prevent grey markets is to create a price corridor.