Question

Prices of products are often higher in a foreign country than the home country due to transportation charges, taxes, tariffs, and exchange rate fluctuations. This change in price from home country to foreign country is referred to as ________.

a. cost-based pricing
b. market price
c. cost-plus pricing
d. price scaling
e. price escalation

Answer 1

Option E Price Escalation

Step-by-step explanation:

Price Escalation is when the government imposes additional taxes on the product which is exported to their country, this makes the product expensive and the customer as a result don't buys that product. Such type of increases in prices are known as price escalation.