On the Long Flight Back from South Korea, Mike Had

question 340

Multiple Choice

On the long flight back from South Korea, Mike had plenty of time to reflect upon the challenges of his business trip that took him all around Asia. His goal to sell his company's state-of-the-art bicycle pump to several foreign firms certainly could have gone better. Although none of the companies he visited turned him down, only one agreed to place an order. Representatives from one Indonesian firm and two Chinese firms asked him when he planned to come again! As Mike reviewed his memories and notes, he wondered, "Didn't they realize the expense of these international trips?" Mike is experiencing

• A) the fact that he is from a West Context Culture and the prospective buyers were from an East Context Culture.
• B) the fact that he is from a highly developed culture and the prospective buyers are from third-world countries.
• C) the differences between high-context and low-context cultures.
• D) brain drain.

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Definitions:

Robinson-Patman Act

An American federal statute that forbids practices that hinder competition among producers, notably price discrimination.

Price Discrimination

A pricing approach in which the same provider charges different prices for products or services that are identical or very similar, depending on the market.

Reference Pricing

The practice of setting a price point for a product or service based on the cost of comparable alternatives in the market.

Original Price

The initial selling price of a product or service before any discounts or promotions are applied.