The combined effect of both clear-cut and hidden costs results in export prices that far exceed domestic prices.This cause is known as:
A) cost overrun.
B) seamless integration.
C) relationship pricing.
D) price escalation.

Question

Quizplus · Accepted Answer

The term "price escalation" specifically refers to the phenomenon where export prices are higher than domestic prices due to the addition of various extra costs, including both clear-cut and hidden costs. Other options such as "cost overrun" and "seamless integration" are not directly related to this concept, while "relationship pricing" refers to the practice of adjusting prices based on the buyer-seller relationship, which is not particularly relevant to the issue of export pricing.

The Combined Effect of Both Clear-Cut and Hidden Costs Results