A pricing policy in which one selling price is established for all international markets is called ________.
A) dual pricing
B) price escalation
C) worldwide pricing
D) transfer pricing

Question

Quizplus · Accepted Answer

Worldwide pricing is a pricing policy in which a company establishes a single selling price for all international markets. This simplifies pricing decisions and reduces the administrative costs and complexities associated with different pricing policies in different markets. Dual pricing refers to a pricing policy in which different prices are charged in different markets, while price escalation occurs when a company raises the prices of its products as they move through channels of distribution. Transfer pricing, on the other hand, is a pricing strategy in which a company charges different subsidiaries different prices for goods or services in order to shift profits to lower-tax jurisdictions.

A Pricing Policy in Which One Selling Price Is Established