Firms can control parallel imports by reducing prices in higher priced markets and limiting supplies to wholesalers in lower priced markets.

Question

Quizplus · Accepted Answer

By reducing prices in higher priced markets, firms can reduce the incentive for parallel importers to purchase goods from these markets and sell them in lower priced markets. Additionally, by limiting supplies to wholesalers in lower priced markets, firms can reduce the availability of the goods that parallel importers seek to acquire in these markets. Both of these strategies can help firms to control parallel imports.

Firms Can Control Parallel Imports by Reducing Prices in Higher