Chat with AIExam 11: Pricing Decisions
The country which has the highest rates of value added tax (VAT)in the European Union is:
(86) 
VerifiedD
How does "Switch Trading" works in global marketing? What is the advantage of the "switching mechanism?" Comment on the logistics and fees involved in this type of arrangement.
(79) VerifiedSwitch trading is also called triangular trade and swap, since as the name indicates there is a switching arrangement. It is a mechanism that can be applied to barter or countertrade. In this arrangement, a third party steps into a simple barter or other countertrade arrangement when one of the parties is not willing to accept all the goods received in a transaction. The third party may be a professional switch trader, a switch trading house, or a bank. The switching mechanism provides a "secondary market" for countertraded or bartered goods and reduces the inflexibility inherent in barter and countertrade. Fees charged by switch traders range from 5 percent of market value for commodities to 30 percent for high-technology items. Switch traders develop their own networks of firms and personal contacts and are generally headquartered in Vienna, Amsterdam, Hamburg, or London. If a party to the original transaction anticipates that the products received in a barter or countertrade deal will be sold eventually at a discount by the switch trader, the common practice is to price the original products higher, build in "special charges" for port storage or consulting, or require shipment by the national carrier.
Ethnocentric pricing responds to the competitive and market conditions of national market.
(71) VerifiedFalse
Why is compensation trading also called a "buyback?" How does it differ from switch trading?
(71) Which of the following would not be used by an exporter with a weak home-country currency?
(85) 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.
(72) The unauthorized distribution of trademarked goods to exploit price differentials in world markets is known as:
(86) A company using geocentric pricing neither fixes a single price worldwide, nor allows subsidiaries or local distributors to make independent pricing decisions.
(80) "Cost-based," "market-based," and "negotiated" are three approaches to:
(95) All of the following activities must be performed when goods cross international boundaries except:
(91) "Export price escalation" is the increase in the initial selling price of goods traded across borders.
(76) Which type of countertrade arrangement is required by governments seeking to reduce the budgetary impact of expenditures for defense or telecommunications?
(78) A market penetration pricing strategy calls for setting price levels that are high enough to quickly build market share.
(71) Many companies that are active in the 19 nations of the euro zone are adjusting to the new cross-border transparency of prices.
(73) The currency fluctuations in global markets have a big impact on international transactions. What actions can be adapted if the domestic currency is strong?
(75) If a company sells products in export markets at prices that are below fair market value and that can harm producers in the export market that company may be accused of:
(77) A strengthening of the home-country currency swings exchange rates in a favorable direction.
(74) If a distributor's margins are based on the "landed" price of an import shipment, they will be based on:
(81) To win sales in important markets such as China, global companies can face demands for offsets even when transactions do involve military procurement.
(79) 
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