Author Question: The ___________________________________ argument is used when a country fears that foreign ... (Read 19 times)

hubes95 · **on:** Jun 29, 2018

The ___________________ ________________ argument is used when a country fears that foreign competitors would be able to offer higher quality products at lower costs and would undoubtedly undercut local manufacturers attempting to break into the market.
Fill in the blank(s) with correct word

Question 2

Which of the following is a justification for setting a higher price in the home market than in the international market?
a. There may be few or no challenges from competition in the international market.
b. The market potential might be limited.
c. Buyers in the international market could afford the higher price.
d. The firm may have the goal of increasing international market share through penetration pricing.

deja · **Reply #1 on:** Jun 29, 2018

Answer to Question 1

infant industry
industrialization of developing countries

Answer to Question 2

D
Setting prices higher in the home market than in the international market is justified by a company goal of increasing international market share, which may occur through penetration pricing in foreign markets. The other options listed above are justifications for setting prices lower in the home country.