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Knowledge about Ethical issues

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A major ethical issue in international business is how products sold in other countries are priced. Describe price discrimination and give three examples of when price discrimination may become an ethical or even a legal issue.

This question is from the text: Ferrell, O.C., Fraedrich, J., & Ferrell, L. (2009). Business Ethics: Ethical Decision Making and Cases (7th ed.) Boston, MA: Houghton Mifflin Company.

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Solution Summary

The response addresses the queries posted in 250 words with references. It discusses price discrimination, which exists in the case of international business. It also describes how price discrimination becomes an ethical or legal issue.

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Price discrimination has been a major issue in the international business scenario. A number of countries indulge in price discrimination practices in order to sell or develop markets for their products in the international market. Price discrimination happens when the same seller charges different prices from different customers, for the same product. Usually, while exercising price discrimination, the seller wants to charge ...

Solution provided by:
  • MBA (IP), International Center for Internationa Business
  • BBA, University of Rajasthan
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