This chapter examines pricing decision in an international context.The chapter begins with a discussion of the role of price in general. It proceeds to cover the various factors that can affect price, with special attention given to certain variables that are unique to the international market (e.g., foreign exchange rate, dumping, price control).
Trang 1Chapter 16
Pricing Strategies:
Basic Decisions
Trang 2
Chapter Outline
The Role of Price
Price Standardization
Trang 3
Chapter Outline
- Supply and Demand
- Cost
- Elasticity and Cross Elasticity of Demand
- Exchange Rate
- Market Share
- Tariffs and Distribution Costs
- Culture
Trang 4
Chapter Outline
- Types of Dumping
- Legal Aspect of Dumping
- How to Dump (Legally and Illegally)
Trang 5
Pricing Decisions
Supply and Demand
Elasticity and Cross Elasticity of Demand
Exchange Rate
Market Share
Tariffs and Distribution Costs
Culture
Trang 6
Dumping
charging different prices for the same product
in similar markets
unfair price
harm to host-country companies
Trang 7
Transfer Pricing
prices used by the parent firm and
subsidiaries when trading among themselves
Transfer Pricing Methods
direct manufacturing costs
direct manufacturing costs plus markup
market-based transfer price
arm's length price