A Company Would Most Likely Export at a Price Lower

question 9

Multiple Choice

A company would most likely export at a price lower than its production and distribution costs in order to ________.

• A)use a skimming strategy abroad before using one domestically
• B)test a market before making a big commitment
• C)use a cost-plus strategy globally
• D)encourage gray market sales

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Definitions:

Reasonable Person

A legal standard used to determine how an average person would responsibly act in certain circumstances.

Duty

A legal or moral obligation to act or refrain from acting in a certain way.

Standard

A set of established criteria, guidelines, or definitions used to measure or compare the quality, quantity, or value of products, services, or practices.

Duty of Care

A responsibility mandated by law, compelling a person to maintain a level of carefulness in behaviors that might predictably injure others.