Parallel imports exist due to
A)inflation.
B)differences in prices across markets.
C)uniform pricing.
D)government price controls.

Question

Quizplus · Accepted Answer

Parallel imports occur due to differences in prices across markets. This is because companies may sell their products at different prices in different countries, and as a result, parallel importers may purchase goods from a country with lower prices and sell them in the country with higher prices, earning a profit. In uniform pricing, prices are the same across all markets, so there would be no price differences to take advantage of. Inflation and government price controls may affect prices, but they do not necessarily create price differences between markets.

Parallel Imports Exist Due to