The combined effect of both clear-cut and hidden costs results in export prices that far exceed domestic prices. This cause is known as:
A) export pricing
B) seamless integration
C) relationship pricing
D) price escalation

Question

Quizplus · Accepted Answer

Price escalation refers to the increase in price of a product as it moves from production to the final consumer, due to the addition of various costs such as transportation, tariffs, and other hidden costs. Export pricing is a factor in price escalation, but it only addresses the strategy of how to determine the price of a product for export markets. Seamless integration and relationship pricing are not related to this concept.

The Combined Effect of Both Clear-Cut and Hidden Costs Results