In which of the following situations can an international business command higher prices for a particular product in a foreign market?
A)the product is widely available in the foreign market
B)sales volumes is relatively low in the foreign market
C)the product offers greater value to customers in the foreign market
D)the product is more suitable to other foreign markets
E)domestic competitors are selling alternatives at reduced prices

Question

Quizplus · Accepted Answer

If the product offers greater value to customers in the foreign market, then the international business can command higher prices for that product. Customers will be willing to pay more for a product that they perceive as having greater value. In all other situations, such as if the product is widely available or if there are domestic competitors selling alternatives at reduced prices, the international business may have to offer lower prices to remain competitive in the market. Therefore, option C is the best choice.

In Which of the Following Situations Can an International Business