Luxury Vehicles Are Exported To China - Research Paper Example

This controversial business opportunity has been caused by the fact that the same luxury cars are sold at very different prices in China where customers in china can only get the same cars with almost three times the prices in USA. For instance, as Grossman (para 1) says, a BMW X5xDrvive35i is sold by BMW at an average of $56,025 in USA and the same car sells at $153,176 in China. These big differences in price between the two countries mean that individuals and even companies in the USA can buy a car and ship it to China, sell it at slightly lower price than the amount BMW is selling it in China and make a huge profit of over a hundred percent of what it costs them to buy and ship the car to China.

The government has cramped down on this business, in most cases freezing the bank accounts of the people associated with these business. The fact that the buyers involved in this business are not breaking any laws but only taking advantage of a market loophole means that there is nothing that is not legal in what they are doing. Cramping on them and freezing their bank accounts is something that is against the constitution of the United States that gives every citizen maximum liberty. There are firms which have been set up to buy cars from the US Auto dealers and then shipping them from the US to China.

To avoid suspicion, the companies train people to be buying the cars for them and them handing over the car to them. An individual is hired and recruited on how to buy the cars from the dealers. As Goldstein (para 28) reports, these recruits are trained so that they can buy the cars on behalf of these firms without raising suspicion. The buyers then walk into a dealership and buy the car they have been instructed to buy, go home with it and stay with it for some time. The person gets paid a few hundred dollars and the company takes the car from them so that they can ship it to the target market.

These buyers who act as agents of these