2. Most countries usually charge visa fees to foreigners based on: (i) the number of times that the visitor wishes to enter the country and (ii) the desirable processing time for a visa. For example, Table 1 below represents a typical illustration of such a fee schedule: Table 1: Visa Fee Schedule Example Processing Time 10 Entries per year 1 day 5 days days Single $ 150 $ 100 $ 70 Double $ 200 $ 140 $ 100 Assume that there is no difference in costs of preparing single and multiple entry visas, as well the costs of processing over 1 day, 3 days and II] days are also the same. (a) Explain the rationale behind the visa pricing policies in terms of segmented pricing. Which groups of travellers are the pricing policies trying to segment? Please explain your answer fully. (10 marks) (b) Consider the premium charged for the double entry relative to Single entry visas. Intuitively what should be the guiding principle behind the maximum premium that the country could charge for the double entry visas? (4 marks) {c} Should the country set the same schedule of visa fees [adjusted for the exchange rate of the local currency) for the citizens of all foreign countries? Why or why not? Please explain your answer. [4 marks)