prices of goods differ in different countries because countr

prices of goods differ in different countries because countries producing the goods have different:

a. delivery methods

b. tariffs

c. costs

Assume a U.S. international marketing manager discovers that their sales representative in India has paid the equivalent of U.S. $5.00 to an Indian government official in exchange for clearing goods through customs. Should the manager be worried the payment is in violation of U.S. law?

a. Yes. It is likely a violation of U.S. law.

b. No. it is not a violation of U.S. law.

c. Yes, if the sales representative is a U.S. citizen

company factors influencing political risk include

a. the host-country

b. localization of operations

c. sensitivity of the industry

Solution

Ans

1 costs

2 No it is a facilitating payment.

3 the host country. E. G Russian companies may face usa sanctions