Taberet,a German firm,is concerned about export price escalation in its U.S.market.It should consider
A)increasing its transfer prices to the U.S.
B)promoting its products as luxury items.
C)joining a U.S.cartel.
D)joining a German cartel.

Question

Quizplus · Accepted Answer

By promoting its products as luxury items, Taberet can justify a higher price point for its products in the U.S. market. This could allow the firm to maintain its profit margins while minimizing the impact of export price escalation. Increasing transfer prices may be seen as unfair to U.S. customers and could result in reduced demand for Taberet's products. Joining a cartel, whether in the U.S. or Germany, raises legal and ethical concerns and could damage the firm's reputation.

Taberet,a German Firm,is Concerned About Export Price Escalation in Its