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Details: As research begins to come in about expansion opportunities abroad, marketing department has found that price elasticity for CPI's products in Brazil is expected to be much greater than in present markets served. Separately, your CFO sent you e-mail earlier in week stating that depending on how much business CPI does abroad, firm would expose 5 to 20 percent of revenue to currency fluctuations (Real and Euro are currencies for Brazil and Germany respectively).

Both of these issues are of concern to you, so you make decision to have meeting with VP of Marketing and CFO. Describe the differences among inelastic, elastic, and unitary price elasticity to VP and CFO. Then, what problems would you enquire? What suggestions would you have for CFO?

 

Business Management, Management Studies

  • Category:- Business Management
  • Reference No.:- M931362

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