In the absence of pure competition,firms who segment markets may be able to charge different prices in different countries for the same good.This practice is known as ________.

Question

Quizplus · Accepted Answer

The practice of charging different prices in different countries for the same good is known as pricing to market. This is possible because of market segmentation, and it allows firms to capture more value from different markets based on factors such as local demand and competition. Mark to market, interest rate arbitrage, and speculation are not related to this specific practice.

In the Absence of Pure Competition,firms Who Segment Markets May