Question

Apex Corporation is a wholesaler for Global Electronics in the French market. Global Electronics discovered that Apex Corp. was diverting some of their goods to the English market. Apex Corp. could get a greater profit in the English market because the goods were bought by the firm at a cheaper price in France. In the context of the above scenario, which of the following forms of business is Apex engaged in?

A. Black marketing.
B. Parallel importing.
C. Backwashing.
D. Industrial piracy.
E. Smuggling.

Answer 1

Apex Corporation is engaged in parallel importing, a practice where they legally import goods intended for the French market and sell them in the English market for a higher profit.

Step-by-step explanation:

In the given scenario, Apex Corporation is engaged in parallel importing. This is a practice where a company imports goods legally but without the permission of the intellectual property owner (Global Electronics in this case) and sells them in a different market (the English market) from the one they were intended for (the French market). Apex Corp. takes advantage of the price differential between the two markets to generate a higher profit. This is different from black marketing, smuggling, or industrial piracy as those practices typically involve illegal or unauthorized methods of acquiring or distributing goods. Parallel importing is often legal, though it can violate distribution agreements and trademarks.