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With gray imports, American buyers are able to gain 30 - 40% in savings on Ferraris, as a result of the stronger dollar at the time. Buyers must receive the car through a registered importer that converts the cars to satisfy American safety standards for a fee. Ferrari alleges that gray imports have no impact on authorized dealers’ profits and that actions taken are really to protect the company’s reputation. Since the majority of Ferrari’s success is due merely to its legendary reputation for race cars, I see Ferrari’s reaction as logical and truly their best option at the time.
2) Does Ferrari’s case prove that requiring that products be delivered only through approved distribution channels ensures the highest quality for the customer?
Answer: Yes, Ferrari’s case proves that requiring that products be delivered only through approved distribution channels ensures the highest quality for the customer...
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