Chapter 12 Flashcards
1
Q
Price standard
A
Simple planning budgeting
Develop global image
2
Q
Profit cost factor
A
Transportation Tariffs Taxes Local procuring costs Channel costs
3
Q
Market factors
A
GDP
Income
High income low elas
Low income high ellas
4
Q
Market factor
A
Fewer buyers more powerful
Competition large competor price war sole price flex manipulated by cartels
5
Q
Environmental factors
A
Home current weak exports attractive
Inflation rates
6
Q
Transfer price
A
Price paid by importing or buying unit of a firm to the exporting unit of same firm
Do it to maximize profit minimize risk
( low tax country ,
7
Q
Uncovered position
Hedging
A
1 pay spot price due date
2 contract for future delivery of foreign currency at set price regardless of spot price at the time
