Why does price escalation most likely occur in exporting?
A)The WTO requires that prices increase.
B)Companies rely on skimming price strategies.
C)Greater distances and more intermediaries increase distribution costs.
D)Uncertain currency value changes necessitate charging higher prices.

Question

Quizplus · Accepted Answer

Greater distances and more intermediaries increase distribution costs in exporting, which can lead to price escalation. Shipping goods over long distances and passing through multiple intermediaries can increase the cost of production and distribution, making it necessary to charge higher prices to ensure profitability.

Why Does Price Escalation Most Likely Occur in Exporting