Short Paper: Price Escalation and Issues
Starbucks Corporation: Serving More than Coffee?
Answer the following questions:
1. Explain the concept of price escalation and why it can mislead an international marketer.
2. What are the causes of price escalation? Do they differ for exports and goods produced and sold in a foreign country?
3. Price escalation is a major pricing problem for the international marketer. How can this problem be counteracted?
4. Outline some basic legal and ethical issues associated with pricing.