The Price Escalation Problem Exists for Multinationals and Varies from Country

question 79

Multiple Choice

The price escalation problem exists for multinationals and varies from country to country; the question is: How should prices be set in different countries Companies have three choices.One is to set a uniform price everywhere.Another is to set a market-based price in each country.Finally,companies can ________.

• A) set a final "cost plus" price in each country
• B) set a cost-based price in each country
• C) let the market dictate price/country
• D) vary the price/market/country on a daily basis to reflect consumer demand
• E) set the transfer price at marginal costs equal to marginal revenue

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Definitions:

Assertiveness

A communication and behavior style characterized by confidently expressing one's thoughts, feelings, and beliefs in a way that respects the rights of others.

Conflict Management

The practice of identifying and handling conflicts in a sensible, fair, and efficient manner.

Superordinate Goal

A shared objective that requires the cooperation of two or more individuals or groups to achieve, often used to resolve conflicts.

Low Assertiveness

Characterized by a lack of self-assurance and confidence in expressing one's opinions or needs.