A Company Using a Geocentric International Pricing Strategy Typically Fixes

question 46

Multiple Choice

A company using a geocentric international pricing strategy typically fixes the long term price floor based on ________.

• A) transfer prices within corporate systems
• B) profits from local sourcing
• C) market penetration pricing
• D) return on invested capital

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Definitions:

Liquidity Ratio

A financial metric indicating how quickly a company can convert assets into cash to meet short-term obligations.

Return On Assets Ratio

A financial metric that measures the profitability of a company relative to its total assets, indicating how efficiently a company uses its assets to generate profits.

Receivables Turnover Ratio

A financial metric used to measure how efficiently a company collects cash from its credit sales by dividing net credit sales by average accounts receivable.

Credit Sales

Sales made by a business that allow the buyer to pay at a later date, typically recorded as accounts receivable.