The director of marketing argues that the base prices of the products that it will sell internationally will need to be adapted so that they are not too high. Which of the following, if true, strengthens the case that this will be necessary?
A) Dinasonic will be relying on economies of scale to keep its production costs down.
B) Dinasonic's products have always been known for their competitive prices.
C) Dinasonic is far behind the current U.S. market leader in its industry.
D) Dinasonic's distribution channels to its target markets will add significant cost to products' base price.
E) Dinasonic will be selling the same products to every country in which it does business.
Answer: D
Explanation: D) If there is a reason that Dinasonic's products will have higher prices in other countries, those prices may need adjusting so that they are not too high. Choices A, B, and E weaken the case that Dinasonic's products will need their prices lowered to sell in international markets. Choice C is not relevant to whether the prices on the Dinasonic products will need to be lowered to sell internationally.
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