Question

Abel Corp. is a wholesaler for Global Electric in the French market. Global Electric discovered that Abel Corp. was diverting some of its goods to the English market. Abel could get a greater profit in the English market because the goods were bought by the firm at a cheaper price in France. What is Abel engaged in?

Answer 1

Answer:

Abel Corp is engaged in maximizing profits.

Explanation:

By different reasons (trade barriers, exchange rate fluctuations, a shift in preferences in Britain increasing demand of Global Electric goods type), there is a market opportunity to increase profits per unit sold faster in Britain than France. IF Abel Corp is not bound by a commercial agreement with Global Electric to sell its products only in France, Global Electric cannot make a complaint about selling its products in another market.