Question

Apex Corp. is a wholesaler for Global Electronics in the French market. Global Electronics discovered that Apex Corp. was diverting some of its 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?

1) Black marketing
2) Parallel importing
3) Backwashing
4) Industrial piracy
5) Smuggling

Answer 1

Apex Corp. is engaged in parallel importing by diverting goods from France to England for a higher profit, which involves importing goods between markets without the brand owner's consent. Thus, the option 2 is the correct answer.

Step-by-step explanation:

In the scenario where Apex Corp., a wholesaler for Global Electronics, diverts goods from the French market to the English market for a higher profit, Apex Corp. is engaged in parallel importing. Parallel importing refers to the practice of purchasing products in one country, typically at lower prices, and then importing them into another country without the permission of the intellectual property owner. This is distinct from black marketing, which involves illegal transactions, smuggling, where goods are moved illegally across borders to avoid taxes or import restrictions, industrial piracy, which involves copying or stealing industrial designs, trademarks, or patented technology, and backwashing, which is not a recognized term in this context.