What are the causes and solutions for parallel imports and their effect on price?
Parallel markets occur when products are imported into a country without the consent of the brand owner. They result from ineffective management of prices and lack of control, and come up when importers buy products from distributors in one country and sell them in another to distributors who are not part of the manufacturer's regular distribution system. The possibility of parallel markets occurs whenever price differences are greater than the cost of transportation between two markets. Solution to parallel markets is to keep tight and effective controls over its management.