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).
Chapter 16 Pricing Strategies: Basic Decisions Chapter Outline The Role of Price Price Standardization Chapter Outline - Pricing Decisions Supply and Demand Cost Elasticity and Cross Elasticity of Demand Exchange Rate Market Share Tariffs and Distribution Costs Culture Chapter Outline Alternative Pricing Strategies Dumping - Types of Dumping - Legal Aspect of Dumping - How to Dump (Legally and Illegally) Price Distortion Inflation Transfer Pricing Pricing Decisions Supply and Demand Cost Elasticity and Cross Elasticity of Demand Exchange Rate Market Share Tariffs and Distribution Costs Culture Dumping charging different prices for the same product in similar markets unfair price – – below production cost below home-country price harm to host-country companies 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 .. .Chapter Outline The Role of Price Price Standardization Chapter Outline - Pricing Decisions Supply and Demand Cost Elasticity and Cross Elasticity of Demand Exchange Rate... Inflation Transfer Pricing Pricing Decisions Supply and Demand Cost Elasticity and Cross Elasticity of Demand Exchange Rate Market Share Tariffs and Distribution Costs ... Market Share Tariffs and Distribution Costs Culture Chapter Outline Alternative Pricing Strategies Dumping - Types of Dumping - Legal Aspect of Dumping - How to Dump (Legally and Illegally)