Scenario 20.2 Use the Following to Answer the Questions

question 111

Multiple Choice

Scenario 20.2
Use the following to answer the questions.
The BASF Chemical Company in Germany has developed a new rubberized coating.The product has an application for cell phones and other hand-held electronic devices that gives them protection from falls and scratches.BASF plans to market the product directly to businesses that manufacture the casings for these types of products.BASF currently uses a system of salespeople headquartered in Germany,while its primary business customers are in China.
-Refer to Scenario 20.2.If BASF were to price its product in barrels from the factory,before it is loaded on the carrier,this would be an example of ____ pricing.

• A)buy-back allowance
• B)geographic
• C)F.O.B destination
• D)F.O.B.factory
• E)base-point

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Definitions:

Unemployment Rate

The segment of the labor force currently without employment but making efforts to find work.

Inflation Rate

The percentage increase in the general level of prices for goods and services in an economy over a period of time.

Aggregate Supply

The aggregate amount of products and services created in an economy at a specific price level during a particular time frame.

Adverse Supply Shock

An unexpected event that suddenly decreases the supply of a product or service, resulting in increased prices and reduced quantity.