Cherokee Cable Corporation, Sells Heavy Wire Cable to Large Construction

question 140

Multiple Choice

Cherokee Cable Corporation, sells heavy wire cable to large construction companies around the country. Customers pay shipping from a central warehouse in Dallas. Recently, a new competitor in Atlanta has been taking away some of Cherokee Cable's southern customers. If Cherokee Cable wants to compete in those distant markets, but not increase the cost of its product to other customers, it would probably switch to

• A) zone pricing.
• B) specifying "F.O.B. Dallas" in its contracts.
• C) uniform delivered pricing.
• D) freight absorption pricing.
• E) None of these would help Cherokee Cable Corporation with its problem.

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Definitions:

Host Country

The nation in which a multinational company operates a facility or office, distinct from the country where its headquarters is located.

Parent Country

Parent country refers to the country where a multinational corporation is headquartered. Employees from this country working abroad for the corporation might be known as expatriates.

Third Country

A country that is neither the parent country nor the host country of an employer.

Third-Country National

An individual employed by a company who is neither a citizen of the country where the company is headquartered nor of the country where they are working.