Global Marketing, 9e, GE (Keegan)

Chapter 11 Pricing Decisions

1) Which of the following companies would be most likely to use some form of countertrade
when selling its products in developing countries?
A) Procter & Gamble
B) Bell Helicopter Textron
C) Nokia
D) Mercedes-Benz
E) Coca-Cola
Answer: B
Difficulty: 2: Moderate
Chapter LO: 11.10: Define countertrade and explain the various forms it can take.
AACSB: Application of knowledge

2) Which of the following is true about proper use of the term "countertrade"?
A) The term "countertrade" is interchangeable with "offsets."
B) The term "countertrade" is interchangeable with "barter."
C) The term "countertrade" is interchangeable with "counterpurchase."
D) "Countertrade" is a blanket term that refers to several different types of business transactions.
E) The term "countertrade" is interchangeable with "dumping."
Answer: D
Difficulty: 2: Moderate
Chapter LO: 11.10: Define countertrade and explain the various forms it can take.
AACSB: Application of knowledge

3) The most general term for the global phenomenon involving reciprocal business interactions
between parties in various countries is known as:
A) switch trading.
B) barter.
C) offset.
D) compensation trading.
E) countertrade.
Answer: E
Difficulty: 2: Moderate
Chapter LO: 11.10: Define countertrade and explain the various forms it can take.
AACSB: Application of knowledge

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4) One of the highest profile companies, PepsiCo, which has done business in the Soviet and
post-Soviet market for decades, has used this form of countertrade:
A) switch trading.
B) barter.
C) offset.
D) compensation trading.
E) counterpurchase.
Answer: B
Difficulty: 2: Moderate
Chapter LO: 11.10: Define countertrade and explain the various forms it can take.
AACSB: Application of knowledge

5) The direct exchange of goods or services between parties in lieu of monetary payment is
known as:
A) barter.
B) switch trading.
C) offset.
D) compensation trading.
E) counterpurchase.
Answer: A
Difficulty: 1: Easy
Chapter LO: 11.10: Define countertrade and explain the various forms it can take.
AACSB: Application of knowledge

6) Which of the following forms of countertrade does not require use of money or credit between
parties?
A) barter
B) switch trading
C) offset
D) compensation trading
E) none of the above
Answer: A
Difficulty: 2: Moderate
Chapter LO: 11.10: Define countertrade and explain the various forms it can take.
AACSB: Application of knowledge

7) Which type of countertrade arrangement is required by governments seeking to reduce the

budgetary impact of expenditures for defense or telecommunications?
A) barter
B) switch trading
C) offset
D) compensation trading
E) none of the above
Answer: C
Difficulty: 2: Moderate
Chapter LO: 11.10: Define countertrade and explain the various forms it can take.
AACSB: Application of knowledge
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8) To win a contract to supply the United Kingdom with AWACS military aircraft, Boeing
agreed to purchase products from the United Kingdom whose value was equivalent to 130% of
the contract. This type of pricing arrangement, which is common when the customer is a foreign
government and the product has military applications, is known as:
A) barter.
B) switch trading.
C) compensation trading.
D) offset.
E) dumping.
Answer: D
Difficulty: 2: Moderate
Chapter LO: 11.10: Define countertrade and explain the various forms it can take.
AACSB: Application of knowledge

9) Suppose that World Corp. signs a contract to build a lumber processing plant in Siberia. If
World Corp. signs a second contract agreeing to take partial payment for the plant in the form of
lumber products produced at the plant, it is engaging in:
A) barter.
B) switch trading.
C) offset.
D) compensation trading.
E) a hybrid countertrade arrangement.
Answer: D
Difficulty: 2: Moderate
Chapter LO: 11.10: Define countertrade and explain the various forms it can take.
AACSB: Application of knowledge

10) When one of the parties to a barter transaction is not willing to accept the goods included in
the transaction, that party is likely to utilize the services of a:
A) switch trader.
B) Foreign Trade Organization.
C) Foreign Sales Corporation.
D) Mittelstand owner.
E) broker.
Answer: A
Difficulty: 2: Moderate
Chapter LO: 11.10: Define countertrade and explain the various forms it can take.
AACSB: Application of knowledge

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11) Despite the high expenses associated with operating elegant stores and purchasing
advertising space in upscale magazines, the premium retail prices that luxury goods like Louis
Vuitton command translate into handsome profits. The Louis Vuitton brand alone accounts for
60% of LVMH's operating profit. On the other hand, Louis Vuitton spends $10 million annually
battling:
A) EU regulations.
B) counterfeiters in countries such as Turkey, South Korea, & Italy.
C) competitors in European countries.
D) suppliers of needed materials.
E) export freight and taxes.
Answer: B
Difficulty: 2: Moderate
Chapter LO: 11.10: Define countertrade and explain the various forms it can take.
AACSB: Application of knowledge

12) To win sales in important markets such as China, global companies can face demands for
offsets even when transactions do involve military procurement.
Answer: FALSE
Difficulty: 2: Moderate
Chapter LO: 11.10: Define countertrade and explain the various forms it can take.
AACSB: Application of knowledge

13) What is offset and why is it important in global marketing? How can it be distinguished from
counterpurchase?
Answer: Offset is a reciprocal arrangement whereby the government in the importing country
seeks to recover large sums of hard currency spent on expensive purchases such as military
aircraft or telecommunications systems. Offset arrangements may also involve cooperation in
manufacturing, some form of technology transfer, placing subcontracts locally, or arranging local
assembly or manufacturing equal to a certain percentage of the contract value. Offset may be
distinguished from counterpurchase since the latter is characterized by smaller deals over shorter
periods of time. Another major distinction between offset and other forms of countertrade is that
the agreement is not contractual but reflects it to memorandum of understanding that sets out the
dollar value of products to be offset and the time period for completing the transaction. In
addition, there is no penalty on the supplier for nonperformance. Some highly competitive sales
have required offsets exceeding 100 percent of the valuation of the original sale.
Difficulty: 3: Challenging
Chapter LO: 11.10: Define countertrade and explain the various forms it can take.
AACSB: Analytical thinking

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Copyright © 2017 Pearson Education, Ltd.
14) Why is compensation trading also called a "buyback?" How does it differ from switch
trading?
Answer: Compensation trading is a form of countertrade that involves two separate and parallel
contracts. In one contract, the supplier agrees to build a plant or provide plant equipment, patents
or licenses, or technical, managerial, or distribution expertise. A hard currency down payment is
paid at the time of delivery. In the other contract, the supplier company agrees to take payment in
the form of the plant's output equal to its investment for a period of as many as 20 years. Interest
is subtracted from the investment. The success of compensation trading rests on the willingness
of each firm to be both a buyer and a seller. Hence, this method is referred to as "buyback." On
the other hand, switch trading is a mechanism that can be applied to barter or countertrade. In
this arrangement, a third party steps into a simple barter or other countertrade arrangement.
When one of the two parties in barter system is not willing to accept all the goods received in a
transaction, the third party may be a professional switch trader, switch trading house, or a bank.
The switching mechanism provides a "secondary market" for countertraded or bartered goods
and reduces the inflexibility inherent in barter and countertrade. Fees charged by switch traders
range from 5% of market value for commodities to 30% for high-technology items. Switch
traders develop their own network of firms and personal contacts.
Difficulty: 3: Challenging
Chapter LO: 11.10: Define countertrade and explain the various forms it can take.
AACSB: Analytical thinking

15) In recent years, in light of the technological developments, many exporters have been forced
to finance international transactions by taking full or partial payment in some form other than
money. A number of alternative forms of payments known as countertrade are widely used. How
does a countertrade transaction work? How do barter transactions differ from offset?
Answer: In a countertrade transaction, a sale results in product flowing in one direction to a
buyer with a separate stream of products and services often flowing in the opposite direction. For
example, the countries in the former Soviet bloc have historically relied heavily on countertrade.
Countertrade flourishes when hard currency is scarce. Since exchange controls may prevent a
company from expatriating earnings, the company may be forced to spend money in-country
following products that are then exported and sold in third-country markets. The reasons
importing nations may demand countertrade include the priority attached to the Western import.
The second condition may be the value of the transactions; the higher the value, the greater the
likelihood that countertrade will be involved. Also, the availability of products from other
suppliers can be a factor. Barter falls in one of the categories of countertrade. The mixed forms
of countertrade, including counterpurchase, offset, compensation trading, and switch trading
belong in a separate category. They incorporate a real distinction from barter because the
transaction involves money or credit. The term barter describes the least complex and oldest
form of bilateral, non-monetized countertrade. It is a direct exchange of goods or services
between two parties. Although no money is involved, both partners construct an approximate
shadow price for products flowing in each direction. Offset, on the other hand, is a reciprocal
arrangement whereby the government in the importing country seeks to recover large sums of
hard currency spent on expensive purchases such as military aircraft or telecommunication
systems.
Difficulty: 2: Moderate
Chapter LO: 11.10: Define countertrade and explain the various forms it can take.
AACSB: Analytical thinking
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Copyright © 2017 Pearson Education, Ltd.
16) How does "Switch Trading" works in global marketing? What is the advantage of the
"switching mechanism?" Comment on the logistics and fees involved in this type of
arrangement.
Answer: Switch trading is also called triangular trade and swap, since as the name indicates
there is a switching arrangement. It is a mechanism that can be applied to barter or countertrade.
In this arrangement, a third party steps into a simple barter or other countertrade arrangement
when one of the parties is not willing to accept all the goods received in a transaction. The third
party may be a professional switch trader, a switch trading house, or a bank. The switching
mechanism provides a "secondary market" for countertraded or bartered goods and reduces the
inflexibility inherent in barter and countertrade. Fees charged by switch traders range from 5
percent of market value for commodities to 30 percent for high-technology items. Switch traders
develop their own networks of firms and personal contacts and are generally headquartered in
Vienna, Amsterdam, Hamburg, or London. If a party to the original transaction anticipates that
the products received in a barter or countertrade deal will be sold eventually at a discount by the
switch trader, the common practice is to price the original products higher, build in "special
charges" for port storage or consulting, or require shipment by the national carrier.
Difficulty: 2: Moderate
Chapter LO: 11.10: Define countertrade and explain the various forms it can take.
AACSB: Analytical thinking

17) India's Tata Motors launched the Nano, a radical new design with a rock-bottom sticker price
of $2,500.
Answer: TRUE
Difficulty: 1: Easy
Chapter LO: 11.1: Review the basic pricing concepts that underlie a successful global
marketing pricing strategy.
AACSB: Application of knowledge

18) All other things being equal, a Boeing 787 costs the same worldwide. By contrast, beer,
compact discs, and many other products that are available around the world are actually offered
in markets that are national rather than global in nature.
Answer: TRUE
Difficulty: 2: Moderate
Chapter LO: 11.1: Review the basic pricing concepts that underlie a successful global
marketing pricing strategy.
AACSB: Application of knowledge

19) Many companies that are active in the 19 nations of the euro zone are adjusting to the new
cross-border transparency of prices.
Answer: TRUE
Difficulty: 2: Moderate
Chapter LO: 11.1: Review the basic pricing concepts that underlie a successful global
marketing pricing strategy.
AACSB: Application of knowledge

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Copyright © 2017 Pearson Education, Ltd.
20) For years, Mercedes-Benz utilized a ________ pricing strategy; however, this created an
opportunity for Toyota to introduce its luxury Lexus line and undercut Mercedes.
A) gray market
B) skimming
C) penetration
D) market holding
E) cost-based
Answer: B
Difficulty: 2: Moderate
Chapter LO: 11.2: Identify the different pricing strategies and objectives that influence
decisions about pricing products in global markets.
AACSB: Application of knowledge

21) If the manufacturer of a sophisticated new consumer electronics product determines that
many target consumers qualify as "innovators" and "early adopters" with relatively inelastic
demand curves, the company should use the ________ pricing strategy.
A) gray market
B) skimming
C) penetration
D) market holding
E) cost-based
Answer: B
Difficulty: 3: Challenging
Chapter LO: 11.2: Identify the different pricing strategies and objectives that influence
decisions about pricing products in global markets.
AACSB: Application of knowledge

22) Two automakers that have joined the race to bring low-cost cars to the emerging Indian
market are:
A) Mercedes and Lexus.
B) Toyota and Ford.
C) Tata and Nissan.
D) Tata and Toyota.
E) Nissan and Toyota.
Answer: C
Difficulty: 1: Easy
Chapter LO: 11.2: Identify the different pricing strategies and objectives that influence
decisions about pricing products in global markets.
AACSB: Application of knowledge

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23) When Sony introduced the first consumer VCRs in the 1970s, the retail price exceeded
$1,000. Within a few years, the price dropped well below $500. This is an example of:
A) skimming strategy.
B) penetration strategy.
C) cost-based strategy.
D) price ceiling strategy.
E) transfer pricing strategy.
Answer: A
Difficulty: 2: Moderate
Chapter LO: 11.2: Identify the different pricing strategies and objectives that influence
decisions about pricing products in global markets.
AACSB: Application of knowledge

24) Historically, many companies that used the ________ for pricing were located in the Pacific
Rim.
A) skimming strategy
B) penetration strategy
C) cost-based strategy
D) price ceiling strategy
E) transfer pricing strategy
Answer: B
Difficulty: 3: Challenging
Chapter LO: 11.2: Identify the different pricing strategies and objectives that influence
decisions about pricing products in global markets.
AACSB: Application of knowledge

25) A market ________ pricing strategy calls for setting price levels that are low enough to
quickly build market share.
A) gray
B) skimming
C) penetration
D) holding
E) cost-based
Answer: C
Difficulty: 2: Moderate
Chapter LO: 11.2: Identify the different pricing strategies and objectives that influence
decisions about pricing products in global markets.
AACSB: Application of knowledge

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Copyright © 2017 Pearson Education, Ltd.
26) In India, consumers do not like to be locked in to long-term contracts, and Apple distributes
its iPhone exclusively through stores operated by Airtel, an Indian carrier, and Vodaphone. This
pricing is an example of:
A) gray market.
B) price bundling.
C) market skimming.
D) razors and blades.
E) cost-based.
Answer: D
Difficulty: 3: Challenging
Chapter LO: 11.2: Identify the different pricing strategies and objectives that influence
decisions about pricing products in global markets.
AACSB: Application of knowledge

27) A firm without much export experience uses the rigid cost-based pricing method. Which of
the following considerations is the exporter ignoring?
A) Is the price competitive in view of local market conditions?
B) Does the price reflect the product's quality?
C) Will authorities in export markets view the price as reasonable or exploitative?
D) Does the price take antidumping laws into consideration?
E) all of the above
Answer: E
Difficulty: 3: Challenging
Chapter LO: 11.2: Identify the different pricing strategies and objectives that influence
decisions about pricing products in global markets.
AACSB: Application of knowledge

28) Mexican customers generally carry small coins. To keep prices of shampoo and detergent
below 11 or 12 pesos, Procter & Gamble is using which method of pricing?
A) price bundling
B) target costing
C) cost-plus approach
D) export price costing
E) cost-based pricing
Answer: B
Difficulty: 3: Challenging
Chapter LO: 11.2: Identify the different pricing strategies and objectives that influence
decisions about pricing products in global markets.
AACSB: Application of knowledge

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Copyright © 2017 Pearson Education, Ltd.
29) As a starting point, firms that comply with Western cost-accounting principles typically use
the pricing method known as:
A) price bundling.
B) target costing.
C) cost-plus pricing.
D) export price costing.
E) full absorption cost.
Answer: E
Difficulty: 3: Challenging
Chapter LO: 11.2: Identify the different pricing strategies and objectives that influence
decisions about pricing products in global markets.
AACSB: Application of knowledge

30) Which pricing strategy has the advantage of being simple to calculate but has the
disadvantage of ignoring demand and competitive conditions?
A) gray marketing
B) skimming
C) penetration
D) market holding
E) cost-based
Answer: E
Difficulty: 2: Moderate
Chapter LO: 11.2: Identify the different pricing strategies and objectives that influence
decisions about pricing products in global markets.
AACSB: Application of knowledge

31) All of the following activities must be performed when goods cross international boundaries
except:
A) obtaining currency permit, if required.
B) packaging goods for export.
C) using the cost-based pricing method.
D) arranging for ocean freight and preparation.
E) obtaining marine insurance and certificate of the policy.
Answer: C
Difficulty: 2: Moderate
Chapter LO: 11.2: Identify the different pricing strategies and objectives that influence
decisions about pricing products in global markets.
AACSB: Application of knowledge

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Copyright © 2017 Pearson Education, Ltd.
32) All of the following basic consideration questions are important for those whose
responsibility includes setting prices on goods that cross borders except:
A) Does the price reflect the product's quality?
B) Is the price competitive given local market conditions?
C) Does the local market use target costing?
D) Should prices differ with market segment?
E) Do the foreign country's dumping laws pose a problem?
Answer: C
Difficulty: 2: Moderate
Chapter LO: 11.2: Identify the different pricing strategies and objectives that influence
decisions about pricing products in global markets.
AACSB: Application of knowledge

33) A manufacturer attempting to set prices for its products in export markets must realize that
CIF, VAT, and distributor markup all lead to:
A) currency devaluations.
B) dumping charges.
C) market skimming.
D) price escalation.
E) market penetration.
Answer: D
Difficulty: 3: Challenging
Chapter LO: 11.2: Identify the different pricing strategies and objectives that influence
decisions about pricing products in global markets.
AACSB: Application of knowledge

34) The following activities must be performed when goods cross international boundaries
except:
A) obtaining currency permit.
B) packing goods for export.
C) transporting the goods.
D) preparing a land bill of lading.
E) receiving payments.
Answer: E
Difficulty: 1: Easy
Chapter LO: 11.2: Identify the different pricing strategies and objectives that influence
decisions about pricing products in global markets.
AACSB: Application of knowledge

35) "Market skimming" is a strategy that uses low prices as a competitive weapon to gain market
position.
Answer: FALSE
Difficulty: 2: Moderate
Chapter LO: 11.2: Identify the different pricing strategies and objectives that influence
decisions about pricing products in global markets.
AACSB: Application of knowledge

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Copyright © 2017 Pearson Education, Ltd.
36) The skimming pricing strategy is appropriate in the mature phase of the product life cycle.
Answer: FALSE
Difficulty: 2: Moderate
Chapter LO: 11.2: Identify the different pricing strategies and objectives that influence
decisions about pricing products in global markets.
AACSB: Application of knowledge

37) A market penetration pricing strategy calls for setting price levels that are high enough to
quickly build market share.
Answer: FALSE
Difficulty: 2: Moderate
Chapter LO: 11.2: Identify the different pricing strategies and objectives that influence
decisions about pricing products in global markets.
AACSB: Application of knowledge

38) Penetration prices often mean that the product may be sold at a loss for a certain period of
time.
Answer: TRUE
Difficulty: 2: Moderate
Chapter LO: 11.2: Identify the different pricing strategies and objectives that influence
decisions about pricing products in global markets.
AACSB: Application of knowledge

39) Canada’s Imax Corporation is the world’s premier provider of large-format motion picture
projection technology. The company has identified 900 potential markets for new Imax theaters;
two-thirds of those are global.
Answer: TRUE
Difficulty: 2: Moderate
Chapter LO: 11.2: Identify the different pricing strategies and objectives that influence
decisions about pricing products in global markets.
AACSB: Application of knowledge

40) Hewlett-Packard (HP) is the world's leading marketer of inkjet printers. HP's printers are
priced very low and margins are slim; by contrast, the company enjoys healthy margins on sales
of replacement ink cartridges. This approach is sometimes known as "razors and blades" pricing.
Answer: TRUE
Difficulty: 2: Moderate
Chapter LO: 11.2: Identify the different pricing strategies and objectives that influence
decisions about pricing products in global markets.
AACSB: Application of knowledge

12
Copyright © 2017 Pearson Education, Ltd.
41) Toyota, Sony, Olympus, and Komatsu are some of the well-known Japanese companies that
use target costing, a process which is also known as "design to cost."
Answer: TRUE
Difficulty: 2: Moderate
Chapter LO: 11.2: Identify the different pricing strategies and objectives that influence
decisions about pricing products in global markets.
AACSB: Application of knowledge

42) "Export price escalation" is the increase in the initial selling price of goods traded across
borders.
Answer: FALSE
Difficulty: 2: Moderate
Chapter LO: 11.2: Identify the different pricing strategies and objectives that influence
decisions about pricing products in global markets.
AACSB: Application of knowledge

43) Companies using "rigid cost-plus pricing" set prices with adjustments to reflect market
conditions outside the home country.
Answer: FALSE
Difficulty: 2: Moderate
Chapter LO: 11.2: Identify the different pricing strategies and objectives that influence
decisions about pricing products in global markets.
AACSB: Application of knowledge

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Copyright © 2017 Pearson Education, Ltd.
44) How can price be used as a strategic variable to achieve specific financial goals? Under what
conditions should skimming or penetration pricing be adapted as strategy?
Answer: Price can be used as a strategic variable based on the financial goals such as return on
investment, profit, and rapid recovery of research and product development costs. When
financial criteria such as profit and maintenance of margins are the goals, the product quality and
price become important aspects of the strategy. The market skimming pricing strategy is part of a
deliberate attempt to reach a market segment that is willing to pay a premium price for a
particular brand or for a specialized or unique product. The skimming price strategy is also
appropriate in the introductory phase of the product life cycle when both production capacity and
competition are limited. By deliberately setting a high price, demand is limited to innovators and
early adopters, who are willing and able to pay the price. When Apple introduced iPhone, the
price used was a skimming price. When the product enters the growth stage of the life cycle and
competition increases, manufacturers start to cut prices. This strategy has been used widely in the
consumer electronics industry. On the other hand, some companies are pursuing non-financial
objectives with their pricing strategy. Price can, therefore, be used as a competitive weapon to
gain or maintain market position. A market penetration pricing strategy calls for setting price
levels that are low enough to quickly build market share. The first-time exporter seldom uses
penetration pricing since it often means that the products may be sold at a loss for a certain
length of time. Many companies, when they are not qualified for patent protection, use
penetration pricing as a means of achieving market saturation before competitors copy their
product.
Difficulty: 2: Moderate
Chapter LO: 11.2: Identify the different pricing strategies and objectives that influence
decisions about pricing products in global markets.
AACSB: Analytical thinking

45) If a distributor's margins are based on the "landed" price of an import shipment, they will be
based on:
A) ex-works price.
B) transportation costs.
C) insurance costs.
D) VAT.
E) all of the above
Answer: E
Difficulty: 2: Moderate
Chapter LO: 11.3: Summarize the various Incoterms that affect the final price of a product.
AACSB: Application of knowledge

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46) All import charges are assessed against the
A) ex-works price.
B) rigid cost-plus price.
C) estimated future cost price
D) flexible cost-plus price
E) landed price
Answer: E
Difficulty: 2: Moderate
Chapter LO: 11.3: Summarize the various Incoterms that affect the final price of a product.
AACSB: Application of knowledge

47) When the seller has agreed to deliver the goods to the buyer at the place the buyer names in
the country of import, with all costs, including duties paid is referred to as:
A) DDP.
B) FCA.
C) FAS.
D) FOB.
E) CIF.
Answer: A
Difficulty: 1: Easy
Chapter LO: 11.3: Summarize the various Incoterms that affect the final price of a product.
AACSB: Application of knowledge

48) Which of the following does not contribute to price escalation in global marketing?
A) shipping and insurance charges
B) value added taxes (VAT)
C) different Incoterms as incentives
D) duties and tariffs
E) fluctuating exchange rates
Answer: C
Difficulty: 2: Moderate
Chapter LO: 11.3: Summarize the various Incoterms that affect the final price of a product.
AACSB: Application of knowledge

49) Which of the following would not be used by an exporter with a weak home-country
currency?
A) Expand product line and add more costly feature.
B) Speed repatriation of foreign-earned income.
C) Buy advertising, insurance, and other services in home-country market.
D) Shift sourcing outside home-country market.
E) Exploit marketing opportunities in all markets.
Answer: D
Difficulty: 2: Moderate
Chapter LO: 11.3: Summarize the various Incoterms that affect the final price of a product.
AACSB: Application of knowledge

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Copyright © 2017 Pearson Education, Ltd.
50) Every commercial transaction is based on a contract of sale, and the trade terms in that
contract specify the exact point at which the ownership of merchandise is transferred from the
seller to the buyer and which party in the transactions pays which cost.
Answer: TRUE
Difficulty: 3: Challenging
Chapter LO: 11.3: Summarize the various Incoterms that affect the final price of a product.
AACSB: Application of knowledge

51) Free alongside ship (FAS) named port is the Incoterm for a transaction in which the seller
places the shipment alongside the vessel upon which the goods will be transported out of the
country.
Answer: TRUE
Difficulty: 2: Moderate
Chapter LO: 11.3: Summarize the various Incoterms that affect the final price of a product.
AACSB: Application of knowledge

52) If the terms of the sale are CFR (cost and freight), the seller is responsible for risk or loss at
any point outside the factory.
Answer: FALSE
Difficulty: 2: Moderate
Chapter LO: 11.3: Summarize the various Incoterms that affect the final price of a product.
AACSB: Application of knowledge

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Copyright © 2017 Pearson Education, Ltd.
53) A working knowledge of Incoterms can be a source of competitive advantage to anyone
seeking an entry-level job in global marketing. What are "Incoterms," and how are they
classified? How are Incoterms applied in global marketing?
Answer: The internationally accepted terms of trade are known as "Incoterms." They are
classified into four different categories. Ex-works (EXW) refers to a transaction in which the
buyer takes delivery at the premises of the seller; the buyer bears all risks and expenses from that
point on. Another category of Incoterms is known as F-Terms in which there are different sets of
terminologies. Free carrier (FCA) is a widely used term in global sales since it is suited for all
modes of transport. Under FCA, transfer from seller to buyer is affected when the goods are
delivered to a specified carrier at a specified destination. FAS (free alongside ship) are the
Incoterm for a transaction in which the seller places the shipment alongside, or available to, the
vessel upon which the goods will be transported out of the country. The seller pays all charges up
to that point. With free on board (FOB), the responsibility and liability of the seller do not end
until the goods have cleared the ship's rail. Several other Incoterms are known as "C-Terms"
such as when goods are shipped (CIF). Cost, insurance, and freight represents the risk of loss or
damage to goods that is transferred to the buyer once the goods have passed the ship's rail. In this
sense, CIF is similar to FOB. If the terms of the sale are cost and freight (CFR), the seller is not
responsible for risk or loss at any point outside the factory. A currency adjustment factor (CAF)
is assessed to protect the seller from possible losses from disadvantageous shift in the currency
exchange rates. All import charges are assessed against the landed price of the shipment (CIF
value). Thus, these terminologies help in identifying who is responsible for what prices and at
what point of exchange. In fact, different Incoterms for larger orders are used as incentives.
Difficulty: 2: Moderate
Chapter LO: 11.3: Summarize the various Incoterms that affect the final price of a product.
AACSB: Analytical thinking

54) In July 2001, the euro's value relative to the dollar was about €1.00 = $0.85. By November
2009, the euro had strengthened to €1.00 = $1.48. In February 2012, one euro was equal to $1.33
and in August 2015 €1.00 = $0.99 All other things being equal, if a European-based global
company wants to preserve margins for goods exported to the U.S. market, the company should:
A) raise prices in dollars.
B) switch to cost-based pricing.
C) adopt a policy of market penetration pricing.
D) reduce prices in dollars.
E) use skimming pricing.
Answer: A
Difficulty: 2: Moderate
Chapter LO: 11.4: List some of the environmental influences that impact prices.
AACSB: Application of knowledge

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Copyright © 2017 Pearson Education, Ltd.
55) If a company's home currency strengthens, it is:
A) a favorable turn of events for the typical exporter.
B) an unfavorable turn of events for the typical exporter.
C) a favorable turn of events since the revenues increase in home currency.
D) an unfavorable turn of events for exporter's home country.
E) neither favorable nor unfavorable turn of events for the typical exporter.
Answer: B
Difficulty: 2: Moderate
Chapter LO: 11.4: List some of the environmental influences that impact prices.
AACSB: Application of knowledge

56) The country which has the highest rates of value added tax (VAT) in the European Union is:
A) Germany.
B) Italy.
C) France.
D) Denmark.
E) Switzerland.
Answer: D
Difficulty: 1: Easy
Chapter LO: 11.4: List some of the environmental influences that impact prices.
AACSB: Application of knowledge

57) A strengthening of the home-country currency swings exchange rates in a favorable

direction.
Answer: FALSE
Difficulty: 2: Moderate
Chapter LO: 11.4: List some of the environmental influences that impact prices.
AACSB: Application of knowledge

58) Since hand carried wine bottles crossing the border from Hong Kong to China are taxed.
Entrepreneurial individuals hire "mules" to transport wine into the mainland.
Answer: FALSE
Difficulty: 2: Moderate
Chapter LO: 11.4: List some of the environmental influences that impact prices.
AACSB: Application of knowledge

59) When Walmart came to Brazil in the mid-1990s, it discovered that local competitors did not
have the technological infrastructure that allowed them to match its aggressive pricing policies.
Answer: FALSE
Difficulty: 2: Moderate
Chapter LO: 11.4: List some of the environmental influences that impact prices.
AACSB: Application of knowledge

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Copyright © 2017 Pearson Education, Ltd.
60) In some instances, deregulation represents a quid pro quo that will allow French companies
wider access to other country markets.
Answer: FALSE
Difficulty: 2: Moderate
Chapter LO: 11.4: List some of the environmental influences that impact prices.
AACSB: Application of knowledge

61) In the United States, Levi Strauss & Company has to face competitive behavior since
Wrangler and Lee brands are being marketed by VF Corporation.
Answer: TRUE
Difficulty: 2: Moderate
Chapter LO: 11.4: List some of the environmental influences that impact prices.
AACSB: Application of knowledge

62) Toys "R" Us unsuccessfully targets the Japanese toy market by bypassing layers of
distribution and adopting a warehouse style of selling that is similar to its U.S. approach.
Answer: FALSE
Difficulty: 2: Moderate
Chapter LO: 11.4: List some of the environmental influences that impact prices.
AACSB: Application of knowledge

63) Levi's non-U.S. sales represent about one-third of revenues but more than 50 percent of
profits.
Answer: TRUE
Difficulty: 2: Moderate
Chapter LO: 11.4: List some of the environmental influences that impact prices.
AACSB: Application of knowledge

64) Marketers of domestically manufactured finished products may be forced to switch to

offshore sourcing of certain components to keep costs and prices competitive.
Answer: TRUE
Difficulty: 2: Moderate
Chapter LO: 11.4: List some of the environmental influences that impact prices.
AACSB: Application of knowledge

19
Copyright © 2017 Pearson Education, Ltd.
65) The currency fluctuations in global markets have a big impact on international transactions.
What actions can be adapted if the domestic currency is strong?
Answer: Currency fluctuations complicate the task of setting prices. A weakening of the
home-country currency swings exchange rates in a favorable direction if the currency in the
country of business is strong. An equally opposite effect can happen when the currency is strong.
In responding to currency fluctuations, global marketers can utilize other elements of the
marketing mix besides price. Other actions that can be taken if the domestic currency is strong
are: (1) engaging in non-price competition by improving the quality of the products, delivery
methods, or after-sale services; (2) improving productivity by taking actions that may result in
cost reduction; (3) if possible, sourcing can be shifted outside the home country; (4) giving
priority to exports to countries, either temporarily or permanently, with stronger currencies; (5)
trimming profit margins and using marginal-cost pricing; (6) keeping the foreign-earned income
in host country as well as slowing down collections; (7) maximizing expenditures in the local
currency of the host-country; (8) buying needed services aboard and paying them in local
currencies; and (9) billing foreign customers in the domestic currency.
Difficulty: 2: Moderate
Chapter LO: 11.4: List some of the environmental influences that impact prices.
AACSB: Analytical thinking

66) Suppose a company selling in various country markets makes statements such as "we know
what the customer wants, and he or she will have to pay for it." This is an indication of a(n)
________ approach to setting prices.
A) ethnocentric
B) polycentric
C) regiocentric
D) geocentric
E) adaptation
Answer: A
Difficulty: 2: Moderate
Chapter LO: 11.5: Apply the ethnocentric/polycentric/geocentric framework to decisions
regarding price.
AACSB: Application of knowledge

67) All of the listed advantages are for "extension or ethnocentric" pricing strategy except:
A) it does not respond to the competitive and market conditions of each national market.
B) it calls for the per-unit price of an item to be the same all over the world.
C) it is extremely simple since it does not require information on market condition.
D) it does not require competitive conditions for implementation.
E) the importer must absorb freight and import duties.
Answer: A
Difficulty: 3: Challenging
Chapter LO: 11.5: Apply the ethnocentric/polycentric/geocentric framework to decisions
regarding price.
AACSB: Application of knowledge

20
Copyright © 2017 Pearson Education, Ltd.
68) If company managers decide to set the export price for a particular product at an amount
equivalent to the home-country price, they would be using which approach to pricing?
A) ethnocentric
B) polycentric
C) regiocentric
D) geocentric
E) extension pricing
Answer: A
Difficulty: 2: Moderate
Chapter LO: 11.5: Apply the ethnocentric/polycentric/geocentric framework to decisions
regarding price.
AACSB: Application of knowledge

69) Which of the following would not be taken into account by a company using an ethnocentric
approach to pricing decisions?
A) the possibility of implementing a penetration strategy
B) profitable price points that could be tied to local sourcing as opposed to home-country
sourcing
C) integration of price with other marketing mix elements
D) factors unique to individual country markets
E) None of the above would be taken into account by a company using ethnocentric pricing.
Answer: E
Difficulty: 3: Challenging
Chapter LO: 11.5: Apply the ethnocentric/polycentric/geocentric framework to decisions
regarding price.
AACSB: Application of knowledge

70) According to a recent study of European industrial exporters, companies that utilized
independent distributors would be most likely to utilize:
A) ethnocentric pricing.
B) polycentric pricing.
C) regiocentric pricing.
D) geocentric pricing.
E) extension pricing.
Answer: B
Difficulty: 2: Moderate
Chapter LO: 11.5: Apply the ethnocentric/polycentric/geocentric framework to decisions
regarding price.
AACSB: Application of knowledge

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Copyright © 2017 Pearson Education, Ltd.
71) Which automaker was described as using an ethnocentric approach to setting prices in the
United States?
A) Toyota
B) Nissan
C) Volkswagen
D) Mercedes
E) Lexus
Answer: D
Difficulty: 1: Easy
Chapter LO: 11.5: Apply the ethnocentric/polycentric/geocentric framework to decisions
regarding price.
AACSB: Application of knowledge

72) Ethnocentric pricing responds to the competitive and market conditions of national market.
Answer: FALSE
Difficulty: 2: Moderate
Chapter LO: 11.5: Apply the ethnocentric/polycentric/geocentric framework to decisions
regarding price.
AACSB: Application of knowledge

73) IKEA takes a polycentric approach to pricing: While it is company policy to have the lowest
price on comparable products in every market, managers in each country set their own prices.
Answer: TRUE
Difficulty: 3: Challenging
Chapter LO: 11.5: Apply the ethnocentric/polycentric/geocentric framework to decisions
regarding price.
AACSB: Application of knowledge

74) A company using geocentric pricing neither fixes a single price worldwide, nor allows
subsidiaries or local distributors to make independent pricing decisions.
Answer: TRUE
Difficulty: 2: Moderate
Chapter LO: 11.5: Apply the ethnocentric/polycentric/geocentric framework to decisions
regarding price.
AACSB: Application of knowledge

22
Copyright © 2017 Pearson Education, Ltd.
75) If a Lexus car is priced in U.S. dollars and sold at the dollar converted price in Indian rupees,
what problems can be expected? What is the difference between ethnocentric, polycentric and
geocentric pricing?
Answer: It will not be possible to sell many cars in India if the price in U.S. dollars is directly
converted into local currency. This is the reason why there is price differential, and different
methods of pricing are used. Ethnocentric pricing calls for the per-unit price of an item to be the
same no matter where in the world the buyer is located. In such instances, the importer must
absorb freight and import duties. The advantage of this pricing is that it is extremely simple and
does not require information on competitive or market conditions for implementation. The
disadvantage is that it does not respond to the competitive and market conditions of each national
market. Polycentric pricing permits subsidiary or affiliate managers or independent distributors
to establish whatever price they feel is most appropriate in their market environment. There is no
requirement that prices be coordinated from one country to another. IKEA takes a polycentric
approach to pricing. In geocentric pricing, the company neither fixes a single price worldwide
nor allows subsidiaries or local distributors to make independent pricing decisions. Instead, the
geocentric approach represents an intermediate course of action. It is based on the realization that
unique local market factors should be recognized in arriving at pricing decisions. These factors
include local costs, income level, competition, and the local marketing strategies. The important
point to note in all pricing systems is that in global marketing there is no such thing as a normal
margin.
Difficulty: 3: Challenging
Chapter LO: 11.5: Apply the ethnocentric/polycentric/geocentric framework to decisions
regarding price.
AACSB: Analytical thinking

76) Parallel importing occurs when companies employ a(n) ________ multinational pricing
policy that calls for setting different prices in different country markets.
A) ethnocentric
B) polycentric
C) regiocentric
D) geocentric
E) extension
Answer: B
Difficulty: 2: Moderate
Chapter LO: 11.6: Explain some of the tactics global companies can use to combat the problem
of gray market goods.
AACSB: Application of knowledge

23
Copyright © 2017 Pearson Education, Ltd.
77) The unauthorized distribution of trademarked goods to exploit price differentials in world
markets is known as:
A) market skimming.
B) black marketing.
C) gray marketing.
D) dumping.
E) licensing.
Answer: C
Difficulty: 1: Easy
Chapter LO: 11.6: Explain some of the tactics global companies can use to combat the problem
of gray market goods.
AACSB: Application of knowledge

78) When Tag Heuer, a marketer of luxury watches, takes out newspaper ads urging consumers
to purchase Tag Heuer products from authorized dealers only, the company is most likely
attempting to combat the ________ problem.
A) countertrade
B) market holding
C) price escalation
D) gray market
E) market skimming
Answer: D
Difficulty: 3: Challenging
Chapter LO: 11.6: Explain some of the tactics global companies can use to combat the problem
of gray market goods.
AACSB: Application of knowledge

79) Gray markets impose several costs or consequences on global marketers, which does not
include:
A) damage to channel relationships.
B) dilution of exclusivity.
C) free riding
D) reputation and legal liability.
E) increase product demand
Answer: E
Difficulty: 3: Challenging
Chapter LO: 11.6: Explain some of the tactics global companies can use to combat the problem
of gray market goods.
AACSB: Application of knowledge

24
Copyright © 2017 Pearson Education, Ltd.
80) If a company sells products in export markets at prices that are below fair market value and
that can harm producers in the export market that company may be accused of:
A) market skimming.
B) using offsets.
C) pursuing artificially high margins.
D) dumping.
E) gray marketing.
Answer: D
Difficulty: 2: Moderate
Chapter LO: 11.6: Explain some of the tactics global companies can use to combat the problem
of gray market goods.
AACSB: Application of knowledge

81) Givenchy and Christian Dior's Dune fragrance are two of the luxury perfume brands that are
sometimes diverted from authorized channels for sale at mass-retail outlets. This practice is
referred to as:
A) barter.
B) switch trading.
C) gray market.
D) offset.
E) dumping.
Answer: C
Difficulty: 1: Easy
Chapter LO: 11.6: Explain some of the tactics global companies can use to combat the problem
of gray market goods.
AACSB: Application of knowledge

82) Luxury good marketers found a new way to combat gray market imports into the United
States. In March 1995, the U.S. Supreme Court let stand an appeals court ruling prohibiting a
discount drugstore chain from selling Givenchy perfume without permission. The distinctive
packaging of the perfume is also protected by the U.S. copyright law. The ruling implies that:
A) Givenchy can only be sold in copyrighted packages.
B) Costco and Walmart will no longer be able to sell Givenchy.
C) Costco and Walmart will be able to sell Givenchy with authorization.
D) gray marketers will be able to market with authorization.
E) discount drugstores cannot market a product resembling Givenchy's perfumes.
Answer: C
Difficulty: 2: Moderate
Chapter LO: 11.6: Explain some of the tactics global companies can use to combat the problem
of gray market goods.
AACSB: Application of knowledge

25
Copyright © 2017 Pearson Education, Ltd.
83) Gray market goods are trademarked products that are exported from one country to another
and sold by authorized persons or organizations.
Answer: FALSE
Difficulty: 2: Moderate
Chapter LO: 11.6: Explain some of the tactics global companies can use to combat the problem
of gray market goods.
AACSB: Application of knowledge

84) If a company manufactures a product in the home-country market as well as in foreign

markets it is considered black marketing.
Answer: FALSE
Difficulty: 2: Moderate
Chapter LO: 11.6: Explain some of the tactics global companies can use to combat the problem
of gray market goods.
AACSB: Application of knowledge

85) Suppose that a book publisher sells a textbook for $150 each to its domestic distributor. The
same publisher sells the same edition of the textbook to a distributor in Thailand for $85 since
the affordable prices by Thai students may be much less than in the domestic market. The
textbook finds its way back into the domestic market since the Thai distributor sold it back to
another marketer who sells in the domestic market for $85. What is this type of pricing known as,
and what are the consequences of such transactions to global marketers, if any?
Answer: This practice is known as parallel importing, and the goods are referred to as gray
market goods. Gray market goods are trademarked products that are exported from one country
to another where they are sold by unauthorized persons or organizations. This practice occurs
when companies employ a polycentric, multinational pricing policy that calls for setting different
prices in different country markets. Gray markets can flourish when a product is in short supply,
when producers employ skimming strategies in certain markets, or when the goods are subject to
substantial markups. Gray markets impose several costs of consequences on global marketers.
These include (1) dilution of exclusivity, where authorized dealers are no longer their sole
distributors; (2) free riding, where channel members can take actions to offset downward
pressure; (3) damage to channel relationship resulting in conflicts and other relationship
problems; (4) undermining segmented pricing schemes because of price differentials; (5)
reputation can be compromised; and (6) legal liability. Thus, gray markets can cause a variety of
problems for the manufacturers as well as distributors. Although it can benefit some customers, it
can have an adverse affect on customer loyalty.
Difficulty: 2: Moderate
Chapter LO: 11.6: Explain some of the tactics global companies can use to combat the problem
of gray market goods.
AACSB: Analytical thinking

26
Copyright © 2017 Pearson Education, Ltd.
86) In the Uruguay round of GATT negotiations, many countries took issue with the U.S. system
of laws, in part because historically the U.S. Commerce Department almost always ruled in favor
of the U.S. company that filed the complaint. This was related to the laws pertaining to:
A) black marketing.
B) market skimming.
C) gray marketing.
D) dumping.
E) licensing.
Answer: D
Difficulty: 3: Challenging
Chapter LO: 11.7: Assess the impact of dumping on prices in global markets.
AACSB: Application of knowledge

87) For positive proof that dumping has occurred in the United States, both ________ and injury
must be demonstrated.
A) black marketing
B) market skimming
C) gray marketing
D) price discrimination
E) price fixing
Answer: D
Difficulty: 3: Challenging
Chapter LO: 11.7: Assess the impact of dumping on prices in global markets.
AACSB: Application of knowledge

88) A global company that uses market skimming as a pricing strategy is likely to invite charges
of "dumping" by competitors in host-country markets.
Answer: FALSE
Difficulty: 2: Moderate
Chapter LO: 11.7: Assess the impact of dumping on prices in global markets.
AACSB: Application of knowledge

89) Many countries took issue with the U.S. system of antidumping laws, in part because
historically, the U.S. Commerce Department almost always ruled in favor of the U.S. company
that filed the complaint.
Answer: TRUE
Difficulty: 2: Moderate
Chapter LO: 11.7: Assess the impact of dumping on prices in global markets.
AACSB: Application of knowledge

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Copyright © 2017 Pearson Education, Ltd.
90) GATT and the U.S. Congress have both defined "dumping." What is the difference in their
definitions? Why is dumping a major issue in global marketing?
Answer: GATT defined dumping as the sale of an imported product at a price lower than that
normally charged in a domestic market or country of origin. The U.S. Congress has defined
dumping as an unfair trade practice that results in "injury, destruction, or prevention of the
establishment of American industry." This definition is very broad and can be interpreted in
different ways. Dumping is an important global pricing strategy issue. Dumping occurs when
imports sold in the U.S. market are priced either at levels that represent less than the cost of
production plus an 8% profit margin or at levels below those prevailing in the producing country.
The U.S. Commerce Department is responsible for determining whether products are being
dumped in the United States. The International Trade Commission (ITC) then determines
whether the dumping has resulted in injury to U.S. firms. Many of the dumping cases in the
United States involve manufactured goods from Asia and frequently target a single or very
narrowly defined group of products. U.S. companies that claim to be materially damaged by the
low-priced imports often initiate such cases. The Byrd Amendment calls for antidumping
revenues to be paid to U.S. companies harmed by imported goods sold at below-market prices.
For positive proof that dumping has occurred in the United States, both price discrimination and
injury must be demonstrated.
Difficulty: 2: Moderate
Chapter LO: 11.7: Assess the impact of dumping on prices in global markets.
AACSB: Analytical thinking

91) ________ occurs when a manufacturer conspires with wholesalers or retailers to ensure
certain retail prices are maintained.
A) Horizontal price fixing
B) Dumping
C) Vertical price fixing
D) Gray marketing
E) Black marketing
Answer: C
Difficulty: 2: Moderate
Chapter LO: 11.8: Compare and contrast the different types of price fixing.
AACSB: Application of knowledge

92) Germany's Bayer Group was fined millions of dollars to settle a lawsuit alleging it had
conspired with Archer Daniels Midland and other global companies to set prices for an enzyme
used in animal feeds. What was the issue in this lawsuit?
A) price skimming
B) market penetration
C) price bundling
D) price fixing
E) dumping
Answer: D
Difficulty: 2: Moderate
Chapter LO: 11.8: Compare and contrast the different types of price fixing.
AACSB: Application of knowledge

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Copyright © 2017 Pearson Education, Ltd.
93) Nintendo was fined nearly $150 million after it was determined that the video game
company had colluded with European distributors. The distributors in countries with lower retail
prices had agreed not to sell to retailers in countries with high prices. This is a classic example
of:
A) price skimming.
B) market penetration.
C) price bundling.
D) price fixing.
E) transfer pricing.
Answer: D
Difficulty: 2: Moderate
Chapter LO: 11.8: Compare and contrast the different types of price fixing.
AACSB: Application of knowledge

94) ________ is derived from the price required to be competitive in the global marketplace.
A) Market-based transfer price
B) Cost-based transfer price
C) Negotiated transfer price
D) Horizontal price
E) Vertical price
Answer: A
Difficulty: 2: Moderate
Chapter LO: 11.8: Compare and contrast the different types of price fixing.
AACSB: Application of knowledge

95) It is illegal for representatives of two or more companies to secretly set similar prices for
their products. This practice is known as transfer pricing.
Answer: FALSE
Difficulty: 2: Moderate
Chapter LO: 11.8: Compare and contrast the different types of price fixing.
AACSB: Application of knowledge

96) When a manufacturer conspires with wholesalers or retailers to ensure certain retail prices
are maintained it is known as horizontal price fixing.
Answer: FALSE
Difficulty: 2: Moderate
Chapter LO: 11.8: Compare and contrast the different types of price fixing.
AACSB: Application of knowledge

29
Copyright © 2017 Pearson Education, Ltd.
97) The European Commission recently fined Nintendo nearly $150 million after it was
determined that the video game company had colluded with European distributors to fix prices.
Why is price fixing not considered a good practice? What are different kinds of price fixings?
Answer: The reason why Nintendo had to pay a fine was due to price fixing which, in most
instances, is considered illegal. It is illegal for representatives of two or more companies to
secretly set similar prices for their products. This practice is known as "price fixing." It is
considered an undesirable practice since it is an anticompetitive act. Companies that collude in
this manner are generally trying to ensure higher prices for their products than would generally
be available if markets were functioning freely. There are two major types of price fixings. One
of them is described as horizontal price fixing in which competitors within an industry that make
and market the same product conspire to keep prices high. For example, if airlines collude and
decide to have higher prices that would be referred to as horizontal price fixing. The next type is
called the vertical price fixing, which occurs when a manufacturer conspires with wholesalers or
retailers to ensure certain higher retail prices are maintained. In the case of Nintendo, it was
vertical price fixing since the video game company had colluded with European distributors to
fix prices.
Difficulty: 2: Moderate
Chapter LO: 11.8: Compare and contrast the different types of price fixing.
AACSB: Reflective thinking

98) "Cost-based," "market-based," and "negotiated" are three approaches to:

A) dumping.
B) gray marketing.
C) transfer pricing.
D) price skimming.
E) counter trade.
Answer: C
Difficulty: 2: Moderate
Chapter LO: 11.9: Explain the concept of transfer pricing.
AACSB: Application of knowledge

99) Joseph Quinlan, chief marketing strategist at Bank of America, estimated that about 25
percent of U.S. merchandise exports represent shipments by American companies to their foreign
affiliates and subsidiaries. This situation underscores the importance of ________ in global
marketing.
A) dumping
B) gray marketing
C) transfer pricing
D) price skimming
E) price fixing
Answer: C
Difficulty: 2: Moderate
Chapter LO: 11.9: Explain the concept of transfer pricing.
AACSB: Application of knowledge

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Copyright © 2017 Pearson Education, Ltd.
100) Transfer pricing is a term that applies to transactions between different divisions or units of
the same company.
Answer: TRUE
Difficulty: 2: Moderate
Chapter LO: 11.9: Explain the concept of transfer pricing.
AACSB: Application of knowledge

31
Copyright © 2017 Pearson Education, Ltd.