Which price system differentiates between domestic and export prices, where two approaches to pricing products for exports are available (cost-driven and market-driven)?

Question

Quizplus · Accepted Answer

Dual pricing is a price system that differentiates between domestic and export prices. It provides two separate prices for the same product, a lower price for the domestic market and a higher price for the international market. This system is commonly used to protect domestic markets from foreign competition while promoting exports. Two approaches to pricing products for exports are available, cost-driven and market-driven, which can be applied to the higher export price. Therefore, option A is the best choice. Options B, C, and D are not accurate terms for this type of pricing system.

Which Price System Differentiates Between Domestic and Export Prices, Where