Scenario 8

question 49

Multiple Choice

Scenario 8.1 Use the following to answer the questions.
Harley-Davidson Motors manufactures all of its motorcycles in the U.S. at one of four sites. With a large number of its bikes sold in markets all around the world, it still retains the manufacturing close to the headquarters for several reasons, one being that its management wants to keep close watch on the quality of its products. However, for all the accessories, apparel, and other riding gear, Harley-Davidson contracts out to other manufacturers to produce the items with the Harley name and logo. Some of these items, particularly the apparel, are made in China. Lately, some members of the Harley Owners' Group (HOG) have been complaining to the company about this practice, citing that "everything Harley should be made in America".
Refer to Scenario 8.1. If Harley-Davidson were to suddenly find its inventory building up in Japan, it might reduce inventory by selling the bikes at below cost prices. This practice is known as

• A) price skimming.
• B) market penetration.
• C) dumping.
• D) differential pricing.
• E) inventory compensation.

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Definitions:

Metapopulation

A population that is divided into several local populations among which individuals occasionally disperse.

Disperse

The action or process by which something spreads or is spread over a wide area.

Reproductive Success

The passing of genes onto the next generation in a way that they too can pass those genes on.

Mortality

The state of being subject to death; often used to describe the rate at which death occurs in a population or the number of deaths in a specific period.