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Pricing for International Markets Factors-05.02

Pricing for International Markets Factors-05.02

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Published by anmol

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Published by: anmol on Mar 04, 2011
Copyright:Attribution Non-commercial


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Pricing for InternationalMarkets Factors
Factors Influencing PricingDecisions in International Markets
1. Cost2. Competitions3. Irregular or Unaccounted Payments in ExportImport4. Purchasing Power 5. Buyers¶ Behaviour 6. Foreign Exchange Fluctuations.
1. Cost
‡ A large number of exporters in initial stagesuse cost-based pricing, which is hardly thebest way to determine price in internationalmarkets‡ However, the cost is often a key determinantof the profitability of a firm in marketing theproduct‡ Firms located in different countries do havesignificant variations in their cost of productionand marketing but the price in internationalmarkets is determined by the market forces‡ Therefore, the profitability among internationalfirms varies widely depending upon their costing.

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