Exam 16: International Pricing Strategy

Penetration pricing is used by companies that

Countertrade is typically handled by countertrade brokers, known in the trade as ______________________________.

In many developing countries, even in countries with a greater access to hard currency (primarily due to the export of natural reserves), governments actually mandate countertrade as a form of payment for firms purchasing imported goods.

Which of the following have been at the center of anti-dumping action in the past decades for the U.S.?

How do regulators decide on whether or not a company is guilty of dumping activity?

_________________________ involve large hard-currency purchases, such as the purchase of defense equipment or airplanes. The seller agrees, in return for the sale of its offering, to purchase products that are valued at a certain percentage of the sale.

Setting prices higher in the home market than in the international market is justified by which of the following?

Countertrade has been traditionally associated with companies from countries in the former Soviet Bloc.

Countertrade is on the increase worldwide.

Setting prices higher in the ____________________ market than in the ____________________ market is justified by buyers in the international market who can afford the higher price.

In the late 1960's Pepsi agreed to an exchange of Pepsi syrup and bottling equipment in return for distributing Stolichnaya vodka. This is an example of a:

Which of the following is an advantage of standardized pricing?

Price discrimination by the manufacturer has been identified as a main cause of parallel importing.

Barter is the only type of exchange that does not involve monetary exchange.

Ministries of Foreign Trade in many developing countries tend to favor light industry imports and to restrict heavy industry imports.

_________________________ are imposed on subsidized products imported into the country.

In a counterpurchase agreement, the seller agrees to purchase products that are usually unrelated to its business.

A firm charging the same price to all channel members encourages competition from unauthorized channels.

Setting prices higher in the ____________________ market than in the ____________________ market is justified by a limited market potential in the international market.

Governments regulations and restrictions exist with regard to many pricing decisions, ranging from dumping to setting limits on wholesalers' gross margins and on the product's retail price.