Exam 12: Global Pricing

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.

When making pricing decisions,______________ set(s)the floor.

Large cross-country price gaps open up arbitrage opportunities that lead to _________________ imports from low-price countries to high-price ones.

When sales transactions occur in some form of compensation other than money (such as trading corn for whiskey),the two trading companies are engaged in ________________.

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

_________________ costs do not vary with sales volume changes.