Multinationals also face the challenge of how to coordinate their pricing policy
across different countries. A lack of coordination will create a parallel trade or gray
market situation (see Chapter 15). With parallel imports, middlemen make a profit by
shipping products from low priced countries to higher priced markets. These imports
will compete with the high-priced equivalent products offered by legitimate distributors.
Efforts to trim big price gaps between countries may be hampered by stonewalling attempts of local country managers or distribution channels.