The hidden effect of the ‘gray market’ on global trade

At an estimated $10 trillion, the global black market is the world’s fastest growing economy and is only rivaled in total value by America’s $14 trillion GDP.

While countries are increasingly cracking down on the black market, the “gray market” has not received much attention — mainly because it is not illegal. Nonetheless, it does have serious, negative effects on global trade, even though certain groups of consumers may benefit.

Gray markets, also known as parallel markets...