Question

Omega, Inc. is considering international expansion and wants to know if it is likely to command a high price for its fitness product. In which of the following situations can Omega, Inc. command higher prices for its fitness product in a foreign market?
A. the product is widely available in the foreign market

B. sales volumes is relatively low in the foreign market

C. the product offers greater value to customers in the foreign market

D. the product is more suitable to other foreign markets

E. domestic competitors are selling alternatives at reduced prices

Answer 1

Answer: Option C

Explanation:

International expansion is a strategy where the organizations enter into global markets for the benefit of making quick profits and business development in new segments. Omega Inc can fix higher prices when their products provide a greater value to the customers in that foreign market.

In the other given situations the company cannot fix a higher price for the fitness products in foreign market. Other situations given are easily available products, low expected sales volume and low price of the competitors.