Scenario: Wang's Techno Toys

question 10

Multiple Choice

Scenario: Wang's Techno Toys
Ann Wang has been successfully running Wang's Techno Toys that sells high-tech toys in the domestic market. Continually increasing and stiff competition at home has now forced Wang's Techno Toys to enter international markets through direct exports.
-Which of the following occurs when a company sells its products to buyers in a target market without going through intermediary companies?

• A) direct export
• B) indirect export
• C) contract manufacturing
• D) licensing

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Definitions:

Discriminatory Price

A pricing strategy in which different customers are charged different prices for the same product or service without a justified basis.

Robinson-Patman Act

A United States federal law aimed at preventing anti-competitive practices by producers, specifically price discrimination.

Exclusive Dealing Agreement

A contract between a seller and buyer in which the buyer agrees to purchase all of a particular product from the seller, excluding competitors.

Significant Anticompetitive Effect

Actions or agreements that significantly reduce competition in a market, in violation of antitrust laws.