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A global firm establishes a cost-based price for its product in each country. The most likely negative outcome is that this pricing strategy will:
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B. Bet too high a price in countries where the firm's costs are high.
C. Result in dumping.
D. Create a gray market.
Answer: B
Explanation:
A firm may set a cost-based price in each market with a standard markup. In a region or country where costs are high, this strategy may result in prices that are too high to be competitive within the local market.
NEW QUESTION: 2
Mr. Kishan owns a factory producing some small spare parts.Under which policy he can get cover against the claim for paying damages and legal costs arising from any bodily injury or damage in the premises of his property ?
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B. Installed on an Isilon cluster
C. Installed on a FreeBSD server
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