Final Exam (Ch. 18) | MKTG 4750 - International Marketing, Quizzes of Digital Marketing

Download Final Exam (Ch. 18) | MKTG 4750 - International Marketing and more Quizzes Digital Marketing in PDF only on Docsity! TERM 1 setting price DEFINITION 1 set lower in foreign market as compared to domestic market price due to: lower labor/material costs, strong local price competition, lower buying powerset higher in foreign market as compared to the domestic market price due to: higher cost of labor and materials in producing overseas, lack of price competition, limited market potential, higher ability and willingness of buyers to pay for product TERM 2 administered pricing DEFINITION 2 attempt to establish prices for an entire market usually with government involvement(illegal to sell below or above) TERM 3 full-cost pricing DEFINITION 3 every unit must bear its full share of the total fixed and variable costs TERM 4 variable-cost pricing DEFINITION 4 firms regard foreign sales as bonus sales and assume that any return over their variable cost makes a contribution to net profit TERM 5 skimming pricing DEFINITION 5 used to reach a segment of the market that is relatively price insensitive and thus willing to pay a premium price for the product TERM 6 penetration pricing DEFINITION 6 used to stimulate market growth and capture market share by deliberately offering products at low prices(likely to lead to dumping charges) TERM 7 price escalation DEFINITION 7 refers to the added costs incurred as a result of exporting products from one country to another TERM 8 added cost of exporting DEFINITION 8 relates to situations in which final prices are raised by costs related to shipping costs, insurance, packing, etc. TERM 9 free trade zone (FTZ) DEFINITION 9 unassembled goods - smaller tariffsassembled goods - higher tariffs TERM 10 the north american free trade agreement (NAFTA) DEFINITION 10 creates a trade block in North American