Exam 18: Pricing for International Markets

The Floral Group, an importing organization in New York, has just bought an excessive amount of perfume from perfume manufacturer in Paris. Unknown to the perfume manufacturer, the Floral Group has sold 25 percent of its order to distributors in France that have been unable to purchase any products from the perfume manufacturer. Which of the following best describes the transaction that has just taken place?

Assembly in the importing country is a way companies attempt to lower prices and avoid dumping charges. These assembly plants are known as _____ plants.

Identify a way by which a company can lower costs by shipping unassembled goods to an FTZ in an importing country.

In _____ pricing, the philosophy is that no unit of a similar product is different from any other unit in terms of cost and that each unit must bear its full share of the total fixed and variable cost.

If limited supply exists, a company may follow a _____ approach to maximize revenue and to match demand to supply.

Explain the process called parallel importing.

_____ duties are levied as a percentage of the value of the goods imported, such as 20 percent of the value of imported watches.

Many global companies consider currency exchange rate swings to be a major pricing problem.

In a(n) _____ market, it is essential for a company to keep prices low and raise brand value to win the trust of consumers.

In general, price decisions are viewed in two ways. Which of the following is one of them?

Administered pricing is an attempt to establish pricing for an entire market.

Explain the two distinct views of what constitutes dumping.

In general, the end goal of all _____ pricing activities is to reduce the impact of price competition or eliminate it.

_____ by business is not viewed as an acceptable practice, but when governments enter the field of price administration, they presume to do it for the general welfare to lessen the effects of "destructive" competition.

An important selling technique to alleviate high prices and capital shortages for capital equipment is the _____ system.

_____ are the primary discriminatory tax that must be taken into account in reckoning with foreign competition.

Discuss the meaning of and nature of cartels. Are these groups beneficial or not? Create an example to illustrate your stance.

The added costs incurred as a result of exporting products from one country to another are called:

Explain the two different views of what constitutes price decisions.

Traditionally, the decision of which pricing policy firms should follow depends on all of the following EXCEPT: