Author Question: Paratariff measures decrease the costs of imports. Indicate whether the statement is true or ... (Read 45 times)

Metfan725 · **on:** Jun 29, 2018

Paratariff measures decrease the costs of imports.

Indicate whether the statement is true or false

Question 2

An international company must react to changes in the competitive environment, in the political and legal environment, and in the economic and financial environment, by changing its pricing strategies accordingly.

Indicate whether the statement is true or false

adammoses97 · **Reply #1 on:** Jun 29, 2018

Answer to Question 1

F
Paratariff measures are charges that increase the costs of imports in a manner similar to tariffs. Such measures include: allowing an initial number of products units to enter the country duty-free and charging tariffs to subsequent shipments in excess of this quota.

Answer to Question 2

T
Pricing decisions are affected by all the external elements in a company's international environment. An international company must react effectively to changes in the competitive environment, in the political and legal environment, and in the economic and financial environment. This appears in the Environment-Related Challenges and Pricing Decisions section (16-2).