Virtual Electronics Is Considering a Strategy to Charge a Very

question 467

Multiple Choice

Virtual Electronics is considering a strategy to charge a very high introductory price for their automobile video theater. After identifying that their rival firms did not carry this new product, they chose this pricing strategy to achieve maximum profits. Virtual Electronics has chosen a ________ strategy.

• A) high-low pricing
• B) penetration
• C) bundling
• D) skimming

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Definitions:

Overall Trade Imbalance

The difference between a country's total exports and total imports over a certain period, indicating whether a country is in a trade surplus or deficit.

Multinational Corporations

Companies that operate in multiple countries, managing production or delivering services in more than one country.

Low-Wage Nations

Countries where the general level of wages is significantly lower than in developed nations.

Productive

The ability to generate a significant amount of output (goods or services) per unit of input (labor, capital, etc.).