Which market involves buying goods in low-price regions and reselling in higher-price regions?

• A. Global Market
• B. Domestic Market
• C. Parallel Market
• D. Gray Market

Answer: (C)

Price arbitrage between regions is the key idea. A parallel market forms when buyers purchase genuine goods in a region where prices are low and move them into higher-price regions to resell, often through non-official distribution channels. This setup fits the scenario of exploiting regional price differences across borders. It’s different from a global market, which implies uniform access and pricing worldwide, and from a domestic market, which is limited to one country. It’s also distinct from the gray market’s usual emphasis on unauthorized or counterfeit items, since the goods are typically legitimate but routed outside the authorized network.