________ occurs when an individual or business capitalizes on a price differential for a firm's product between two countries by buying the product in the country where the price is low and reselling it in the country where prices are higher.
A) Arbitrage
B) Strategic pricing
C) Price discrimination
D) Market pricing

Question

Quizplus · Accepted Answer

For profitable price discrimination, the firm must be able to keep its national markets separate. If it cannot do this, individuals or businesses may undercut its attempt at price discrimination by engaging in arbitrage.

________ Occurs When an Individual or Business Capitalizes on a Price