When Companies Are Setting Prices in Different Countries,the Problem with Setting

question 14

Multiple Choice

When companies are setting prices in different countries,the problem with setting a market-based price in each country 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 might price the product out of the market in countries where costs are high
• D) this strategy would make the price too high in poor countries and not high enough in rich countries
• E) all of the above

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Definitions:

Semicircular Canals

Structures in the inner ear involved in maintaining balance.

Vertigo

Equilibrium disorder that is often associated with problems in the receptors of the semicircular canals in the ear.

Tympanic Membrane

Membranous region that receives air vibrations in an auditory organ; in humans, the eardrum.

Bipolar Cells

A type of neuron found in the retina, serving as an intermediary between photoreceptors (rods and cones) and ganglion cells, contributing to the processing of visual information.