1. The Chinese Visa Application Centre in London charges applicants for visas an application

service fee and a visa fee. The application service fee is 35.25 for processing within four

working days and 47 for processing within three working days. The single-entry visa fee is 30,

65, and 20 for citizens of the United Kingdom, United States, and other countries respectively.

The corresponding double-entry visa fees are 45, 65, and 30. (Source: Chinese Visa

Application Centre, London, January 5, 2010.)

(a)

Explain the Visa Centre's pricing policies in terms of direct segment discrimination. Discuss

whether issuance of visas meets the conditions for such discrimination.

(b)

Explain the Visa Centre's pricing policies in terms of indirect segment discrimination

between tourists and business travellers. Discuss whether issuance of visas meets the

conditions for such discrimination.

(c)

Should the Chinese Government set the same visa fees in all foreign countries?