Exam 12: Pricing in international markets

Which of the following is not a general price-setting strategy in international marketing?

What is a Letter of Credit?

The forward exchange market is:

________________ is the price that unrelated parties would have reached on the same transaction.

Which of the following is considered an external factor in setting an export price?

Which one of the following is not descriptive of letters of credit?

Some exporters prefer price stability to the greatest possible degree and allow mark-ups to vary in maintaining stable local currency prices.

Free on board (FOB)applies to _________ shipments.

Which of the following is not a general alternative pricing mechanism?

Factoring houses are places that afford reliable accounting of the dollar increment of actual purchasing power.

What is not an objective when establishing transfer prices?

Factoring houses may purchase an exporter's receivables for a discounted price.

The ability to offer financing or credit terms is often critical in competing for, and winning, export contracts.

Market-differentiated pricing calls for export pricing according to the dynamic conditions of the marketplace.What changes might affect this type of pricing?

The marginal cost method of pricing considers the direct costs of producing and selling products for export.What costs are disregarded in this method?

______________ refers to a tactic whereby a foreign firm intentionally sells at a loss in another country in order to increase its market share at the expense of domestic producers, which amounts to an international price war.____________ is the result of time lags between the dates of sales transaction, shipment and arrival.Prices, including exchange rates, can change in such a way that the final sales price turns out to be below the cost of production or below the price prevailing in the exporter's home market.

The currency futures market is conceptually similar to the forward market; that is, to buy futures on the British pound sterling implies an obligation to buy in the future at a pre-specified price.

The International Chamber of Commerce accepted standard definition for terms of sale in 1936 and revised them in 2000 to assist buyers and sellers in the international marketplace.What are these standard definitions called?

Which of the factors is not considered when establishing the basic premise for pricing?

Price escalation is often compounded by environmental constraints imposed by government regulations or the demands of ever more environmentally conscious consumers.