Pricing for export markets is generally more complex than pricing for domestic commercial activity. What pricing...

Pricing for export markets is generally more complex than pricing for domestic commercial activity. What pricing strategies are available to exporters seeking to enter and develop new markets ?

Expert Solution

Pricing strategies which are available to the exporters seeking to enter and develop new markets will always be considering various kinds of international factor while determining the overall prices and these factors including the exchange rate differentiations and level of interest rates in that particular economy along with the inflation rate in that particular economy and there will be consideration in relation to the Macro factors along with the global factors before determination of a price and it will generally be considered after ascertainment of additional cost with the company is incurring and the additional labour costs which the company is incurring in producing the product in that country or the company will be specifically trying to consider various strategies like-

A . Cost plus pricing strategies- cost plus pricing strategies in relation to the international market is a one of its own form of strategy which will help the organisation to fix the overall price of the product based upon the total cost and then it will try to add a certain specific amount of margin which the company wants to earn on its products, and in international field where there is a export relative scenario and there is a high risk exposure than the company should be trying to ascertain the margin and it will be trying to factor for various kinds of exchange rate exposure and interested factors along with inflation factors and currency factors before determination of the margin and adding it to the cost price

B. Marginal cost pricing is another form of pricing which is followed in order to enter the cut throat competition of export business in international Arena and it will be tried to penetrate through the market and maximize the rate of return by entering into the foreign market and it will be trying to manage the course through marginal factor by sir training of various kinds of transaction cost along with translation cost and risk associated with doing business in other countries.

these are the pricing strategies which are available to the exporter who are seeking to enter into the foreign companies through export

jeff jeffy answered 2 years ago

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