If foreign marketing costs are high and variable unit costs are used as the basis for pricing, a standard worldwide price may successfully be used.

Question

Quizplus · Accepted Answer

Using variable unit costs as the basis for pricing, especially when foreign marketing costs are high, typically leads to different prices in different markets rather than a standard worldwide price. This is because variable costs and marketing expenses can vary significantly from one country to another, affecting the final price.

If Foreign Marketing Costs Are High and Variable Unit Costs