Regardless of how companies go about pricing their products,their foreign prices probably will be higher than their domestic prices for comparable products.This is known as the ________ problem.
A) price escalation
B) demand escalation
C) inflation
D) skimming price
E) deflation

Question

Quizplus · Accepted Answer

Price escalation is the issue of higher prices of products when they are sold in foreign markets due to additional costs incurred during transportation, custom duties, taxes, and other factors. These additional costs lead to a higher price for foreign consumers than the domestic ones. Hence, the correct option is A) price escalation.

Regardless of How Companies Go About Pricing Their Products,their Foreign