Price escalation could lead to sales of the exported good being confined to a limited segment of wealthy, price-insensitive customers.

Question

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Unless some of the costs that create price escalation can be reduced, the marketer is faced with a price that may confine sales to a limited segment of wealthy, price-insensitive customers. In many markets, buyers have less purchasing power than in the United States and can be easily priced out of the market.

Price Escalation Could Lead to Sales of the Exported Good