Quoted from CrazyLevi:
I'll pay you 10 bucks if you can teach the class how one would "arbitrage" brand new pinball machines and sell them at "wholesale" price. Which part of the planet can you buy pinball machines at lower than dealer cost, and turn around and arbitrage them into big profits?
"arbitrage" is a classic explanation used to settle down nervous ponzi scheme investors. The orignal Ponzi guy - Steve Ponzi or whatever his name was - claimed he was running an "arbitrage" model on stamps for pete's sake!
Its a legal term you dont understand the meaning of.
You buy something that is intended for another market (i.e. supposed to leave the country) that has different pricing at play.
And or take advantage of exchange rates that are in your favor....
This happens all the time people just dont bother to look.... next time you walk around a drugstore for example look at the labels on consumer goods.
Anytime you see labels with french or Portuguese etc that is product intended for another market (Canada, South America) that came back here because it was cheaper to buy it there.
Easiest example is prescription drugs.... a pill that is $5 here due to our fucked up system could easily be 50 cents in another market.
I am not saying this is what happened here but its more likely then they were all stolen.
Another term for it and definition- Parallel trade refers to the resale of goods between countries without the authorization of the owner of the intellectual property (IP) rights associated with those goods. It is a response to international price discrimination, whereby an identical product is sold at different prices in different countries.