To cover the incremental costs (such as shipping), the final foreign retail price will often be much higher than the domestic retail price.This phenomenon is known as _____.
A)inflation.
B)the price deflator.
C)price escalation.
D)price sensitivity.
E)global arbitrage.

Question

Quizplus · Accepted Answer

Price escalation refers to the increase in the final selling price of goods in a foreign market, often due to additional costs like shipping, tariffs, and taxes, making the product more expensive abroad than in its home market.

To Cover the Incremental Costs (Such as Shipping), the Final