The Problem with Setting a Uniform Global Price for a Product

question 67

Multiple Choice

The problem with setting a uniform global price for a product is that ________.

• A) it allows intermediaries in low-price countries to reship their products to high-price countries
• B) the company would earn the same profits everywhere, regardless of the cost structure
• C) this strategy can price the product out of the market in countries where costs are high
• D) this strategy makes the price too high in poor countries and not high enough in rich countries
• E) it is ineffective for products that are homogeneous

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Definitions:

Experimental Group

The group in an experiment that receives the treatment or intervention, used to assess the treatment's effect.

Control Group

A group in an experiment or study that does not receive treatment by the researchers and is used as a benchmark to measure how the other tested subjects do.

Correlational Studies

A type of non-experimental research method in which a researcher measures two variables, understands and assesses the statistical relationship between them without any causal assumption.

Cause-and-Effect

A relationship where one event (the cause) makes another event happen (the effect).