Question

Your firm makes toys in North America and distributes them to Asia.​ Asia's currency has an exchange rate higher than North America. This means that your firm has to decide whether to price the item from your home market or use the host currency to set price. In order to remain marketable in the​ area, you decide to set the price using the host currency. This means your firm will receive​ ________.

A.lower profit margin

B.higher profit margin

C.lower demand

D.larger distribution costs

E.higher demand

Which of the following is FALSE regarding a market pricing​ policy?

A.It is the most common pricing policy adopted by firms.

B.It is used by firms following a polycentric approach to marketing.

C.The firm calculates and charges the​ profit-minimizing price in each market it serves.

D.A firm using market pricing customizes its prices on a​ market-by-market basis.

E.The firm must be able to prevent arbitrage.

You want to break into a new market with your new cleaning products and are trying to figure out how to do so. You want to be able to get your message across to your foreign customers in a personal way. Which of the following would be a good way to do​ so?

A.Use your local salespeople in the other countries.

B.Subcontract personal selling to local sales organizations that handle product lines for several firms.

C.Use a​ mass-marketing advertising campaign.

D.Create a​ 24-hour hotline for customers to call.

E.Create some demonstrations in stores.

Answer 1

>>In order to remain marketable in the​ area, you decide to set the price using the host currency. This means your firm will receive​ ________.

As the host country has a higher exchange rate, it would be priced higher .The firm would make

B. Higher profit margin

>>Which of the following is FALSE regarding a market pricing​ policy?

C.The firm calculates and charges the​ profit-minimizing price in each market it serves.

every firm aims to maximise its profits

>> Which of the following would be a good way to do​ so?

B.Subcontract personal selling to local sales organizations that handle product lines for several firms.