Two Major Issues Confronting International Marketers Result from Currency Movement

question 71

Multiple Choice

Two major issues confronting international marketers result from currency movement.The first of these is in which currency do we quote our prices? The second is:

• A)how much of the loss or gain (because of pass through) should be passed to consumers?
• B)how much should we invest in the local currency?
• C)how much should we invest in our own currency?
• D)what role should the central bank play in currency movement?
• E)should we trust international arbitrage as a means of settling currency value?

---

Definitions:

Outside Supplier

An external entity that provides goods or services to a company, usually part of the supply chain.

Transfer Price

The cost applied to products or services exchanged between units or affiliates within the same corporation.

Variable Expenses

Costs that change in proportion to the activity or volume of production in a business.

Selling Costs

Expenses incurred directly from the sale of a product or service, including marketing, advertising, and sales personnel expenses.