Explain, how you would set the price in Japan for a product that sells in the US for $10/unit.  How, if at all, does that calcuation change if it retails for $100?  $10,000?  How do you guard against arbitrage, that is, someone buying it cheaply in one country and reselling it in a more expensive market

Economics Today and Tomorrow, Student Edition
1st Edition
ISBN:9780078747663
Author:McGraw-Hill
Publisher:McGraw-Hill
Chapter11: Marketing And Distribution
Section: Chapter Questions
Problem 20AA
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Explain, how you would set the price in Japan for a product that sells in the US for $10/unit.  How, if at all, does that calcuation change if it retails for $100?  $10,000?  How do you guard against arbitrage, that is, someone buying it cheaply in one country and reselling it in a more expensive market.

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