Differences in the competitive situation across countries will usually lead to:
A) cross-border price differentials.
B) local price differentials.
C) domestic price differentials.
D) intra-company price differentials.
E) company-based price differentials.

Question

Quizplus · Accepted Answer

Differences in the competitive situation across countries will lead to cross-border price differentials. This is because the level of competition, market demand, and supply chain vary from country to country, leading to differences in the cost of production, distribution, and marketing. As a result, companies adjust their prices to remain competitive in each market, which creates price differentials across borders.

Differences in the Competitive Situation Across Countries Will Usually Lead