Managers at the Ridgeway Corporation produce a medical device that they sell in Japan, Europe, and the United States. Transportation costs are a negligible proportion of the product's total costs. The price elasticity of demand for the product is -4.0 in Japan, -2.0 in the United States, and -1.33 in Europe. Because of legal limitations, this medical device, once sold to a customer in one country, cannot be resold to a buyer in another country.