A Manager at JC Penney Discovers That Sears Has Reduced

question 109

Multiple Choice

A manager at JC Penney discovers that Sears has reduced the price of its children's Levi's from $31.99 to $24.99,according to an advertisement in the Sunday newspaper.She immediately phones her store and instructs the salesperson on duty to put a sign up next to their children's Levi's that reads,"SALE: $24.99." This is an example of what pricing strategy?

• A) Secondary-market pricing
• B) Bait-pricing
• C) Reference pricing
• D) Random discounting
• E) Comparison discounting

Assess the net present value of international projects using different currency approaches.

Identify the relationship between spot rates and forward rates in the context of the forward rate market.

Apply the concept of purchasing power parity (PPP) in determining exchange rates based on price levels.

Evaluate the impact of political risk on international investments and how it can be managed.