Destination-specific adjustment of markups in response to exchange-rate changes are referred to as:
A) pass-through.
B) markup via commercialization.
C) prime manipulation.
D) pricing-to-market.

Question

Quizplus · Accepted Answer

Destination-specific adjustment of markups in response to exchange-rate changes are referred to as pricing-to-market. It involves adjusting prices in international markets to maintain a desired level of profits, which can involve changing markup levels on different products or in different regions. This can be done by altering prices for similar products in different countries so that the relative price remains the same after exchange rate changes.

Destination-Specific Adjustment of Markups in Response to Exchange-Rate Changes Are