Exam 11: Pricing Decisions

Which of the following does not contribute to price escalation in global marketing?

If the terms of the sale are CFR (cost and freight), the seller is responsible for risk or loss at any point outside the factory.

All of the listed advantages are for "extension or ethnocentric" pricing strategy except:

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?

Suppose that World Corp. signs a contract to build a lumber processing plant in Siberia. If World Corp. signs a second contract agreeing to take partial payment for the plant in the form of lumber products produced at the plant, it is engaging in:

"Market skimming" is a strategy that uses low prices as a competitive weapon to gain market position.

________ occurs when a manufacturer conspires with wholesalers or retailers to ensure certain retail prices are maintained.

Germany's Bayer Group was fined millions of dollars to settle a lawsuit alleging it had conspired with Archer Daniels Midland and other global companies to set prices for an enzyme used in animal feeds. What was the issue in this lawsuit?

If the manufacturer of a sophisticated new consumer electronics product determines that many target consumers qualify as "innovators" and "early adopters" with relatively inelastic demand curves, the company should use the ________ pricing strategy.

When the seller has agreed to deliver the goods to the buyer at the place the buyer names in the country of import, with all costs, including duties paid is referred to as:

Which of the following companies would be most likely to use some form of countertrade when selling its products in developing countries?

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

________ is derived from the price required to be competitive in the global marketplace.

Levi's non-U.S. sales represent about one-third of revenues but more than 50 percent of profits.

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?

Which of the following is true about proper use of the term "countertrade"?

When a manufacturer conspires with wholesalers or retailers to ensure certain retail prices are maintained it is known as horizontal price fixing.

In recent years, in light of the technological developments, many exporters have been forced to finance international transactions by taking full or partial payment in some form other than money. A number of alternative forms of payments known as countertrade are widely used. How does a countertrade transaction work? How do barter transactions differ from offset?

In some instances, deregulation represents a quid pro quo that will allow French companies wider access to other country markets.

In India, consumers do not like to be locked in to long-term contracts, and Apple distributes its iPhone exclusively through stores operated by Airtel, an Indian carrier, and Vodaphone. This pricing is an example of: