Suppose that the manager of a company has estimated the probability of a super-event sometime during the next three years that will disrupt all suppliers as 2%
In addition, the firm currently uses four suppliers for its main component, and the manager estimates the probability of a unique-event that would disrupt one of them sometime during the next three years to be 20%. Supplier management costs during this period are $50,000 per supplier. The financial cost incurred if all four suppliers are disrupted at the same time is estimated to be $10,000,000. What is the expected monetary value (cost) of the current supplier diversification arrangement?
A) $412,800
B) $415,680
C) $10,200,000
D) $215,680
E) $8,240,000
B
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Luxury good marketers found a new way to combat gray market imports into the United States. In March 1995, the U.S
Supreme Court let stand an appeals court ruling prohibiting a discount drugstore chain from selling Givenchy perfume without permission. The distinctive packaging of the perfume is also protected by the U.S. copyright law. The ruling implies that: A) Givenchy can only be sold in copyrighted packages. B) Costco and Walmart will no longer be able to sell Givenchy. C) Costco and Walmart will be able to sell Givenchy with authorization. D) gray marketers will be able to market with authorization. E) discount drugstores cannot market a product resembling Givenchy's perfumes.
Which of the following is true of price discrimination as a part of international pricing strategy?
A. The more competitors there are, the lesser consumers' bargaining power will be. B. The more competitors there are, the less likely consumers will be to buy from the firm that charges the lowest price. C. A firm may charge a higher price for its product in a country where competition is limited than in one where competition is intense. D. Many competitors cause low elasticity of demand. E. If a firm raises its prices above those of its competitors, consumers will refuse to switch to the competitors' products.