Friday, January 2, 2015

6 Why is the price adjustment device more useful to an IC than to smaller separate companies?

6 Why is the price adjustment device more useful to an IC than to smaller separate companies?
According to Ball, (et. all), 2006 in International business: The challenge of global competition (10th ed), price adjustment is more useful to an integrated IC than to separate companies because they have "much opportunity to adjust selling prices in intraenterprise transactions between the parent and its affiliated companies or between affiliates. The selling prices are raise or lowered in anticipation of changes in currency exchange rates, thereby maximizing gains and minimizing loses".

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