Exam 18: Pricing for International Markets

What primary discriminatory tax must be taken into account in foreign competition?

If the supply of a product in a market is limited, a company may follow a ________ approach to maximize revenue and to match demand to supply.

In countries where large shares of the population are moving into middle-income classes, penetration pricing will depress market growth.

Assembly in the importing country is a way companies attempt to lower prices and avoid dumping charges. These assembly plants are known as ________ plants.

In ________ pricing, a firm is concerned only with the marginal or incremental cost of producing goods to be sold in overseas markets.

Deflation results in ever-decreasing prices, creating a positive result for consumers, but putting pressure on everyone in the supply chain to lower costs.

A ________ policy is used to stimulate market and sales growth by deliberately offering products at low prices.

What is the function of a countervailing duty?

Gerard was concerned that he would not be able to get maintenance and servicing on equipment used in his overseas operation. Leasing the equipment would be the best option for Gerard.

A product sold in one country may be exported to another and undercut the prices charged in that country.

With deflation, consumers face ever-rising prices that eventually exclude many of them from the market.

A(n) ________ duty is a flat charge per physical unit imported.

Price escalation could lead to the sales of exported goods being confined to a limited segment of wealthy, price-insensitive customers.

Which approach to pricing is most suitable when a company has high variable costs relative to its fixed costs?

What is a tariff? What are the three basic ways in which tariffs may be levied?

Describe what happens in parallel importing. What are the advantages and disadvantages of this practice?

What is the typical payment procedure for established customers where the goods are delivered and the customer is billed on an end-of-the-month basis.

Longer channels of distribution are more useful for keeping prices under control than shorter channels of distribution.

Making price quotations for international sales requires including a number of elements that may not be relevant in domestic pricing. Explain the process and what must be considered.

The creation of a free trade zone may lead to