Thursday, 11 June 2009

Vocabulary: Parallel Import / Grey Product

During the discussion in a lesson last Saturday, one of the groups came to me with a term that I have always wanted to know, but never remembered to look for, and what is that?

Let's guess, see how many tips do you need to reach the final answer:
  1. It has to do with shopping

  2. It comes in 2 types

  3. Both types are legal

  4. They are the same product

  5. Both types are sold in the same shop

  6. One type is cheaper than the other

  7. One type is all new, the other is mostly new but sometimes used

  8. They are sold outside normal distribution channels by companies which may have no relationship with the producer of the goods

  9. One buys the product where it is available cheaply, often at retail but sometimes at wholesale, and imports it legally to the target market

  10. They are mostly electronics suchs as cameras or mobile phones.

So do you know what I am talking about now? I'm referring to the parallel import or the grey products.
Do you own any? I do. Fancy a new iPhone 3GS, anyone? I don't.

Other terms to do with the grey products are:

Tariff -- is a duty imposed on foreign goods. They are usually associated with protectionism, the economic policy of restraining trade between nations.

Bootlegging -- usually refers to making, transporting and/or selling illegal alcoholic liquor or copyrighted material; the term originates from concealing flasks of alcohol in the legging of boots.

Question: What is the name of the product that is illegal called in English and what is the one you can buy from Broadway, Fortress or Gome called in English?


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