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The Price Escalation Problem Exists for Multinationals and Varies from Country

Question 54

Multiple Choice

The price escalation problem exists for multinationals and varies from country to country; the question is: How should prices be set in different countries Companies have three choices.One is to set a uniform price everywhere.Another is to set a market-based price in each country.Finally,companies can ________.


A) set a final "cost plus" price in each country
B) set a cost-based price in each country
C) let the market dictate price/country
D) vary the price/market/country on a daily basis to reflect consumer demand
E) set the transfer price at marginal costs equal to marginal revenue

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