Delxen Inc., a multinational company, uses the same prices for all its products globally. This type of pricing is called ________.
A) going-rate price
B) one world price
C) local market condition price
D) transfer price
E) cost-based price

Question

Quizplus · Accepted Answer

Delxen Inc. uses the same prices for all its products globally, which is known as "one world price," as mentioned in option B. Going-rate pricing (option A) is a strategy in which companies set their prices based on the prevailing market conditions in a particular region or country. Local market condition pricing (option C) considers the local market conditions such as demand and supply, competition, and government policies while setting the prices. Transfer pricing (option D) is the pricing strategy used by multi-divisional companies to set a price for goods and services transferred between different units of the organization. Cost-based pricing (option E) is a pricing strategy in which companies set the prices by adding a markup percentage to the cost of producing the product.