Exam 12: Global Pricing

When sales take place between related entities of the same company, _____is often used.

Wide gaps in the price sensitivity between countries for the same product may create conditions that promote _____ markets.

LEGO, the Danish toymaker, rather than worrying about finding ways to lower the price of its product in foreign markets has chosen (most LEGO sets are sold from $6-$223) to adopt a _____ strategy position.

One of the risks of dynamic incremental pricing (in the case where the export list price is far below the domestic price) that _____ can be triggered in the export market.

When developing a pricing strategy for its global markets, one of the first steps that a company must go through is to decide:

Cost differentials do not lead to wide price gaps.

To reduce exposure and risk of antidumping actions, the exporter can follow any of the following marketing strategies except:

Inflation in an economy is an example of a(n) _____ impact on pricing decisions.

To combat hyperinflation, many governments occasionally impose _____ controls.

Countries with low per-capita income are more _____ than in developed countries.

To cover the incremental costs (such as shipping), the final foreign retail price will often be much higher than the domestic retail price.This phenomenon is known as _____.

Huge government deficits are examples of a(n) _____ impact on pricing decisions.

The only consideration of companies doing business in the United States (including foreign-based firms) is to achieve a satisfactory return on investment.

Domestic fixed costs are sunk costs.

One of the courses of action that a company can follow when faced with price controls is to adapt the product line.

_____ uses the market mechanism as a cue for setting transfer prices.

Which of the following are exporter strategies when the domestic currency is strong?

When sales transactions occur between related entities of the same company, _____ pricing often occurs.

A weakening of the U.S.dollar relative to the Japanese yen has the effect of:

In the international marketplace, _____ pricing arrives at a price after removing domestic fixed costs.Only variable export costs generated by the exporting effort and a portion of the overhead load should be recuperated by the pricing effort (according to this method).