When a product has a higher selling price in the target market than it does in the home market or the country where production takes place,it is called ________.
A) price skimming
B) price escalation
C) price dispersion
D) price fixing

Question

Quizplus · Accepted Answer

Price escalation occurs when a product has a higher selling price in the target market than it does in the home market or the country of production. This can be due to additional costs like transportation, tariffs, taxes, and fees that increase the overall price. Price skimming refers to setting a high initial price for a product and gradually lowering it over time. Price dispersion refers to the variation in prices for the same product across different channels or locations. Price fixing involves collusion between companies to set the same price for a product, which is illegal.

When a Product Has a Higher Selling Price in the Target