CLEP Marketing

Answer: E - A multinational company’s pricing decisions are affected by the following external factors: competitive environment, price dumping, currency exchange rates, and demand and supply curves. Pricing decisions in international markets are sensitive to a number of external factors, including the competitive environment. Local companies often offer competitive pricing, as they may have reduced costs in shipping and distribution. Price dumping is another external factor that is often predatory in nature and resulting from extremely low-priced products or large amounts of products being “dumped” into a market. Finally, demand and supply curves determine a multinational company’s pricing decisions.