When exporters lower their mark-ups in a more price-conscious export market than in a price-sensitive market, with respect to exchange rate movements this is called_____.
A)local-currency price stability (LCPS)
B)pricing-to-market (PTM)
C)transfer pricing
D)countertrade pricing
E)demand mark-up pricing

Question

Quizplus · Accepted Answer

Pricing-to-market (PTM) occurs when exporters adjust their mark-ups in response to market conditions, such as the price sensitivity of consumers in different markets, rather than strictly following exchange rate movements.

When Exporters Lower Their Mark-Ups in a More Price-Conscious Export