What is pricing to market? Where is it most prevalent?
What will be an ideal response?
Pricing to market is the practice of adjusting export prices in response to exchange rate changes so as to limit changes in the prices paid by importers. This behavior has been found to be generally increasing and especially prevalent amongst Japanese and German exporters.
You might also like to view...
Based on the following information, what is the balance on the current account?
Exports of goods and services = $5 billion Imports of goods and services= $3 billion Net income on investments = -$2 billion Net transfers = -$2 billion Increase in foreign holdings of assets in the United States = $4 billion Increase in U.S. holdings of assets in foreign countries = -$1 billion A) -$2 billion B) $1 billion C) $3 billion D) $4 billion
If a country began exporting product A and importing product B, then, as compared to the autarky (no-trade) situation, the marginal cost of product A will
A) increase. B) decrease. C) shift outward. D) shift inward. E) remain the same.