Global Pricing Strategies Should Be Consistent with

question 84

Multiple Choice

Global pricing strategies should be consistent with

• A) offshore distribution facilities.
• B) cost of materials.
• C) positioning strategies.
• D) domestic pricing.
• E) trade surplus guidelines.

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Definitions:

Collusion

An agreement, usually illegal, between rivals in which they decide not to compete with each other, often resulting in higher prices or restricted supply of products or services.

Rule-of-thumb

A practical principle that is not strictly accurate in all cases but is sufficient for most circumstances.

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in its price, indicating the sensitivity of consumers to price changes.

Elastic

Describes a situation where the quantity demanded or supplied of a good responds significantly to changes in its price.