Examine the five following cases and determine if the functional currency of a U.S. parent's foreign unit is the foreign currency or the U.S. Dollar.
Scenario Receivables and payables denominated in foreign currency are not usually remitted to parent company. Sales prices are influenced by worldwide competitive conditions and responsive on a short-term basis to exchange rate changes. Foreign unit obtains materials primarily from its own country. The unit’s financing is taken care of through ongoing fund transfers by the parent. There is a low volume of intercompany transactions and little operational interrelations between the U.S. parent and foreign unit. Functional Currency is?
Describe the relationship between technological changes and the marketing environment.
Explain the process and impact of electronic commerce on consumer behavior.
Identify how regulatory changes can influence technological adoption and market forces.
Understand the concept of electronic commerce and its forms.
Collude
The act of cooperating or conspiring, especially in a deceitful way, between companies to limit competition and manipulate market prices or conditions.
Collusion Model
A theoretical framework that explains how firms within a market may work together to manipulate market conditions, such as price and output, to their advantage.
Perfectly Competitive
A market structure characterized by many buyers and sellers where no single entity can influence market prices.
Predatory Pricing
A pricing strategy where a firm sets its prices below cost in the short term to drive competitors out of the market and achieve a monopoly.