Exam 11: Pricing Decisions

GATT and the U.S.Congress have both defined "dumping." What is the difference in their definitions? Why is dumping a major issue in global marketing?

Marketers of domestically manufactured finished products may be forced to switch to offshore sourcing of certain components to keep costs and prices competitive.

The U.S.Labor Department filed a complaint against Swatch Group alleging that the Swiss watchmaker improperly used transfer pricing to evade millions of dollars in customs duties and taxes.

"Cost-based," "market-based," and "negotiated" are three approaches to:

The country which has the highest rates of value added tax (VAT)in the European Union is:

If a distributor's margins are based on the "landed" price of an import shipment,they will be based on:

Which of the following would not be used by an exporter with a weak home-country currency?

Which of the following would not be taken into account by a company using an ethnocentric approach to pricing decisions?

When disparities in prices between different country markets exceed the transportation and duty costs separating the markets,enterprising individuals can purchase goods in the lower-price country market and then transport them for sale in markets where higher prices prevail.Give examples in support of this statement.

Why is compensation trading also called a "buyback?" How does it differ from switch trading?

Canada's Imax Corporation is the world's premier provider of large-format motion picture projection technology.The company has identified 900 potential markets for new Imax theaters;two-thirds of those are global.

The European Commission recently fined Nintendo nearly $150 million after it was determined that the video game company had colluded with European distributors to fix prices.Why is price fixing not considered a good practice? What are different kinds of price fixings?

The following activities must be performed when goods cross international boundaries except:

When Sony introduced the first consumer VCRs in the 1970s,the retail price exceeded $1,000.Within a few years,the price dropped well below $500.This is an example of:

A strengthening of a home-country currency swings exchange rates in a favorable direction.

Suppose a company selling in various country markets makes statements such as "we know what the customer wants,and he or she will have to pay for it." This is an indication of a(n)________ approach to setting prices.

Suppose that a book publisher sells a textbook for $150 each to its domestic distributor.The same publisher sells the same edition of the textbook to a distributor in Thailand for $85 since the affordable prices by Thai students may be much less than in the domestic market.The textbook finds its way back into the domestic market since the Thai distributor sold it back to another marketer who sells in the domestic market for $85.What is this type of pricing known as,and what are the consequences of such transactions to global marketers,if any?

To provide positive proof that dumping has occurred in the United States,both ________ and injury must be demonstrated.

A company using geocentric pricing neither fixes a single price worldwide,nor allows subsidiaries or local distributors to make independent pricing decisions.

What kind of price pressures are faced by Levi Strauss & Company in the United States? How does this pressure compare with sales outside of the United States?