Journal Title

Journal of Marketing Development and Competitiveness

Publication Date



Parallel imports (PI) are goods brought legally into a market without the authorization of the local intellectual property rights (IPR) owner. Whether governments should allow PI liberally or not has been a subject of great debate. In this paper, we argue that full-scale liberalization of PI hurts international competition and should not be allowed. Instead, we argue that national/regional IPR exhaustion within countries or groups of countries with similar demand characteristics, while sustaining price differentiation across groups with different demand characteristics, may be the optimal global policy on PI activities. Our arguments are based on Resource Advantage (R-A) theory.


Economic Policy & Planning; Foreign Policy; Imports; International Trade & Foreign Investment;

Publication Information

Journal of Marketing Development and Competitiveness, 2014, Volume 8, Issue 3, 25-42.

© 2014 North American Business Press

Archived version is accepted manuscript.



Document Type

Journal Article

Included in

E-Commerce Commons