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Scenario: Scooters, Inc. Scooters, Inc. Is a Producer of Pricey Scooters. the Company's

Question 110

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Scenario: Scooters, Inc.
Scooters, Inc. is a producer of pricey scooters. The company's profits come mostly from sales of its luxury line that caters to the rich and famous, similar to the Vespa. Ben Driven, vice president of marketing for Scooters, Inc. has been asked to review the company's worldwide pricing strategy.
-Ben's boss, Bjorn Turide, has asked Ben to hypothesize what might occur if the company raised its prices further in export markets. Ben should tell his boss that ________.


A) international sales might fall sharply if customers in export markets discover that prices are lower in the domestic market
B) an arbitrage situation could result
C) the company will have to keep international and domestic buyers separate
D) all of the above

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