an unofficial market for shares, currencies, etc., which works at the same time as the official market: The offshore currency market can be viewed as a parallel money market. on the parallel market Increased controls would likely spur more activity on the parallel market.
Parallel Marketing system means the system other than the public distribution system under which a person imports, transports, packs, distributes or sells under his own arrangement.
The emergence of a black (parallel) market for hard foreign currencies is one of the important consequences of foreign exchange controls: such controls re- strict the availability of hard foreign currencies for imports of goods, services, and capital flows.
A market which trades foreign currencies, stocks, shares, etc. and which runs at the same time as a country's own market. Parallel markets mean that a country has less control over its economy.
Key Takeaways. A company can list its shares on more than one exchange, which is referred to as dual-listing. In order to be listed, a stock must meet all of the exchange's listing requirements and pay for all associated fees. A company might list its shares on several exchanges to boost the stock's liquidity.
What are the effects of parallel trade in two sided markets?
Parallel imports (PIs) may increase manufacturer profits in two-sided markets. Such PIs benefit consumers and improve manufacturer country's welfare. For large network externalities, PIs increase consumer surplus and social welfare. For a small network externality on one side, PIs hurt consumers and social welfare.
Parallel markets generally develop in conditions of excess demand for a commodity subject to legal restrictions on sale, or to official price ceilings, or both. Foreign exchange transactions in a large majority of developing countries are subject to both kinds of restrictions.
The economics on parallel exchange rates is clear: they are expensive, highly distortionary for all market participants, are associated with higher inflation, impede private sector development and foreign investment, and lead to lower growth.
Also, during the US Civil War, the Union states in the north introduced United States Notes to fund war costs. These notes, dubbed 'Green Backs', circulated as currency in parallel to the Gold dollar and were later repurchased by the US government.
The informal market (also known as the black market or shadow market) is a market where economic activity is not recorded. These markets are without government intervention and regulation.
The same products are traded at lower costs in countries with different economic conditions. Parallel trade, on the other hand, is the transportation of these products to different markets by taking them from countries where they are sold at affordable prices.
A parallel equity market with lighter listing requirements that serves as an alternative platform for companies to go public, and the investment in this market is restricted to Qualified Investors.
Notwithstanding the general trend towards currency liberalisation in the past few decades, black markets still exist in economically significant countries such as Iran, Nigeria and India, and account for a sizeable share of their GDP.
The black market exchange rates in the following 17 developing countries are studied. Bangladesh, Brazil, Fiji, Gambia, Ghana, Guyana, Hungary, Ireland, Jamaica, Kenya, Nepal, Nigeria, Philippines, Somalia, South Africa, Uganda, and (the former) Yugoslavia.
How is an exchange rate fixed? The exchange rate can be fixed by either the government or its central bank. They set the rate: the upper and lower limits that the exchange rate can move between. The central bank is responsible for maintaining the exchange rate at the rate decided.
Answered By: Bobray Bordelon. Last Updated: Jan 09, 2024 Views: 30117. Black market exchange rates are exchange rates that differ from the officially given exchange rate set by a government. These black market rates often occur when the official rate bears little resemblance to the actual market conditions.
Pricing. Goods and services acquired illegally and/or transacted for in an illegal manner may exchange above or below the price of legal market transactions: They may be cheaper than legal market prices. The supplier does not have to pay for production costs and/or taxes.
Since demand for foreign currency normally exceeds supply, suppliers are able to charge a higher price than the official rate. The difference between the black market (or parallel) exchange rate and the official rate is known as the black-market premium.
Amazon is a perfect example of a two-sided marketplace. The brand functions on a C2C (consumer-to-consumer) business model. This allows sellers to advertise their products, and buyers to choose the best one.
Parallel importation of goods produced abroad is permissible if these goods were produced with the consent of the domestic patent owner and subsequently sold without any clear notice of restriction. This rule applies regardless of the existence of any patent rights in the exporting country.
Examples of well known companies employing two-sided markets include such organizations as American Express (credit cards), eBay (marketplace), Taobao (marketplace in China), Facebook (social medium), LinkedIn (professional media), Mall of America (shopping mall), Match.com (dating platform), AIESEC (leadership ...
