Effects of grey imports on franchised dealers and the economy

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Case of Zimbabwe

Grey Imports have come as a two edged sword, destroying the Zimbabwean Motor Industry through competition, inter alia.

They have also excited the general populace by giving them a chance to own cars, thereby creating an immense tug-of-war between the brand new vehicle dealers and the grey imported vehicle dealers.

This book takes the reader through the origins of grey imports, merits and demerits, experiences of other economies as well as recommendations thereto.

The research was limited to grey imported vehicles and the analysis shows how these as a substitute for brand new vehicles have affected the financial performance of franchised dealers.

Infrastructure development and industry ecological objectives were discussed herein.

In addition, the impact of the increased imports on national revenue through collection of taxes and tollgate fees was also discussed.

Opportunities of vehicle ownership to low income-earners, personal mobility and the impact on social welfare also formed part of the research.

The paper is of paramount importance to economic analysts, accountants, car assemblers, Industry developers and legislators in determining whether a total ban is desirable or not.

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