Two major issues confronting international marketers result from currency movement. The first of these is in which currency do we quote our prices? The
Second is:
A) how much of the loss or gain (because of pass through) should be passed to consumers?
B) how much should we invest in the local currency?
C) how much should we invest in our own currency?
D) what role should the central bank play in currency movement?
E) should we trust international arbitrage as a means of settling currency value?

Question

Quizplus · Accepted Answer

The second major issue confronting international marketers is how much of the loss or gain (because of pass through) should be passed to consumers. This refers to the decision of whether to absorb the cost of currency movement or to pass it on to the consumers in the form of higher or lower prices. It is important for marketers to consider this issue carefully, as it can have significant implications for their profitability, competitiveness, and customer loyalty. The other options listed (B, C, D, and E) are also important considerations for international marketers, but they do not directly address the issue of currency pass through and pricing.

Two Major Issues Confronting International Marketers Result from Currency Movement