When an Exporter Uses the _____ Method, the Effect Can

question 32

Multiple Choice

When an exporter uses the _____ method, the effect can be negative.Frequent adjustments of prices in response to currency movements will distress local channels and customers.

• A)local-currency price stability (LCPS)
• B)pricing-to-market (PTM)
• C)transfer pricing
• D)countertrade pricing
• E)demand mark-up pricing

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Definitions:

Barter

An ancient form of trade where goods or services are exchanged directly for other goods or services without the use of money as a medium.

Balance of Trade Deficit

An economic measure where a country's imports exceed its exports during a specific time period.

Imports and Exports

The practice of bringing goods and services into a country (imports) and sending goods and services out of a country (exports) to engage in international trade.

United States

A country located in North America comprised of 50 states, a federal district, five major self-governing territories, and various possessions, known for its diverse geography, culture, and economy.