To overcome this problem when selling to less-affluent consumers in developing countries, many companies make simpler or smaller versions of their products that can be sold at lower prices. Others have introduced new, more affordable brands for global markets. This is known as a(n) problem.
A) price escalation
B) inflation
C) deflation
D) demand escalation
E) skimming price

Question

Quizplus · Accepted Answer

Price escalation refers to the increase in the final selling price of goods due to added costs such as tariffs, taxes, and distribution expenses when selling in foreign markets. Companies address this by offering simpler or smaller versions of products to keep prices affordable for less-affluent consumers.

To Overcome This Problem When Selling to Less-Affluent Consumers in Developing