Which of the following is an example of a voluntary import ...

[Chelseaamend]

Which of the following is an example of a voluntary import expansion?
 a. McDonald's using its Moscow franchise profits to purchase vodka from Russia.
  b. Japan importing U.S. semiconductors.
  c. The U.S. limiting Japanese steel imports.
  d. Wal-Mart raising its prices in the European Union so local consumers won't discriminate in favor of U.S. firms.

Question 2

In spite of the obvious advantages of tailoring the price to the budget of the consumer, many companies selling high-end technology products opt for using a standardized pricing strategy.
 
 Indicate whether the statement is true or false

[srodz]

Answer to Question 1

B
Japan averted U.S. imposed trade sanctions by voluntarily importing U.S. semiconductors. McDonald's using its Moscow franchise profits to purchase vodka from Russia is an example of countertrade. They then sold the vodka for hard currency. They repatriated their profit in this way. The U.S. limiting of Japanese Steel imports is an example of voluntary export restraints. Wal-Mart was forced to raise its prices in the EU, which serves as an example of a price control.

Answer to Question 2

T
In spite of the obvious advantages of tailoring the price to the budget of the consumer, many companies selling high-end technology products opt for using a standardized pricing strategy. In addition to the cost benefits of standardized pricing, this strategy is also a deterrent to gray market activity.